MGT602 Glossary

Accountant:

A person who carries out bookkeeping, auditing, and other financial reporting and analysis. This is a generic term referring to a wide range of skills from semi-clerical to highly trained professional work.

Accounts payable:

The outstanding bills of an enterprise; money owed to suppliers for goods and services purchased for the normal operations of the venture. Accounts payable are included on the balance sheet under current liabilities.

Accounts receivable:

The money that is owed to a venture for goods and services that have been purchased from it or that have been committed as a grant or donation. Accounts receivable are included on the balance sheet under current assets.

Administrative domain:

The ways managers make decisions

Asset:

Anything that can be sold, on which a money value hence can be placed. In a balance sheet, everything that an organization owns that can be expressed as a dollar value is listed. Assets include, for example, land, buildings, machinery, inventories, patents, cash, investments in other companies, money owed, etc.

Breakthrough innovations: · MGT602 · Glossary

A new product with some technological change

Business ethics:

The study of behavior and morals in a business situation

Business plan:

The description of the future direction of the business

Business:

The production of goods or services for profit. Such activity can be carried out by an individual, a family, a partnership, or an incorporated company.

Calculated risk:

A risk that has been given thoughtful consideration and for which the potential costs and potential benefits have been weighted and considered is called calculated risk.

Capital:

1. In economics, one of the factors of production that is essential to the functioning of the economy. It represents the mines, factories, machinery, and other capital goods that are used to produce goods and services and on which income is earned. The capital in an economy increases as new investments are made from the profits earned on existing capital. 2. In financial markets, the funds available for investment in financial assets such as shares, bonds, certificates of deposit, or real property. 3. In business, the total funds invested in the company to enable it to carry out its activities.

Capitalist:

A person who owns shares in a business enterprise.

Cash flow:

A detailed outline of estimates for the receipt of revenue and the payments to be made over a period of time such as six months to a year. The cash-flow projection will highlight periods of cash shortage and potential need for credit

Competition:

A market in which rival sellers are trying to gain extra business at one another's expense and thus are forced both to be as efficient as possible and to hold their prices down as much as possible. Competition is thus a sophisticated yet uncoordinated mechanism that sorts out the actions of millions of buyers and sellers and uses the resulting pattern of supply and demand to determine what shall be produced, in what quantities, and at what price.

Corporate culture:

The environment of a particular organization

Demand:

The combined desire, ability and willingness on the part of individuals to acquire or make use of a good or service. Demand is determined by income and by price, which is, in part, determined by supply.

Depreciation:

A method of calculating and writing off the costs of fixed assets, such as machinery, buildings, trucks, and equipment. Investment in such fixed assets, which wear out or become obsolete over time, is a normal expense of business.

Desirability of new venture formation:

Aspects of a situation that make it desirable to start a new company.

Diversified activity merger:

Combination of at least two totally unrelated firms

Economic growth:

The increase over a period of time in the production of goods and services and the capacity to produce goods and services. Economic growth is usually measured as the percentage increase in gross national product over a specified period of time, after adjusting for inflation; since population is constantly changing, a more precise measure is the rate of growth of real per capita income.

Efficiency:

The most effective use or allocation of resources to yield the maximum benefits. Efficiency in one sense — the effective use of resources — is often applied to individual firms in comparing how well they organize the productive process (labor, management, machinery and new technology) to achieve the lowest possible production cost for their products. In a broader sense it refers to the way in which all of the various factors of production are used to achieve maximum output throughout