Building blocks
These are the four key elements—land, labor, capital, and entrepreneurship—required to produce goods and services.
What are factors of production?
In this ethical theory, moral actions are judged based on their outcomes or consequences, focusing on the greatest good for the greatest number.
What is utilitarianism?
This theory condenses Maslow’s hierarchy into three core needs: existence, relatedness, and growth.
What is ERG theory?
This motivational framework outlines five levels of human needs, starting with physiological and ending with self-actualization.
What is Maslow's pyramid?
This term refers to the belief that no one culture’s moral system is superior to another.
What is cultural relativism?
This document defines a company’s purpose, values, and strategic goals, often beginning with “Why we exist.”
What is a mission statement?
In decision-making, this term describes the tendency to rely on the first piece of information encountered to make judgments.
What is anchoring bias?
These broad strategies guide businesses in competing in the market: growth, stability, and retrenchment.
What are the three grand strategies?
This organizational structure emphasizes clear authority levels and adherence to rules, with decision-making centralized at the top.
What is hierarchy culture?
This type of organization operates in multiple countries and often adapts its strategies to suit local markets. Examples include Coca-Cola and McDonald’s.
What is a multinational corporation?
This financial document summarizes a company’s assets, liabilities, and shareholders’ equity at a specific point in time, offering a snapshot of its financial health.
What is a balance sheet?
According to this cognitive bias, people tend to overestimate their ability to predict outcomes or events that are actually based on chance.
What is the overconfidence bias?
This model explains the stages of moral reasoning: pre-conventional, conventional, and post-conventional.
What are Kohlberg's three stages of moral development?
Named after a 1920s fraudster, this pyramid involves paying early investors with funds collected from newer participants.
What is Ponzi's pyramid?
The system of trade and investment involving the interconnected economies of different countries.
What is globalization?
This tool in marketing involves dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.
What is market segmentation?
This theory asserts that individuals’ decisions are influenced by the perceived likelihood of an event happening and the expected outcome, often leading to irrational choices.
What is prospect theory?
This sustainability framework evaluates business performance through three pillars: people, planet, and profit.
What is the triple bottom line?
This controversial business model relies on recruiting participants who earn profits from enrolling others rather than selling products.
What is pyramid selling?
This term refers to all the factors outside an organization that can influence its operations, including economic, social, political, legal, technological, and environmental elements.
What is the external business environment?
This model in economics illustrates the movement of money, goods, and services between different sectors of the economy, such as households, businesses, and the government.
What is the circular flow model?
This term refers to the tendency for people to rely on immediate, easily available information rather than seeking out more comprehensive data.
What is the availability heuristic?
This communication theory suggests people believe others are more influenced by media messages than they are themselves.
What is the third-person effect?
This corporate responsibility framework includes four layers: economic, legal, ethical, and philanthropic responsibilities.
What is Carroll's pyramid?
This term refers to individuals who expose unethical or illegal activities within an organization, often risking their careers or personal safety.
What is whistleblowing?