Glossary - Introduction To Business - ثاني ثانوي

GLOSSARY A Absolute advantage a situation where a country can produce a good or service at a lower cost than other countries. Accountability taking responsibility for the results achieved. Angel investors business people, often existing entrepreneurs, who have already been successful and are willing to make a cash injection into a fledging business in exchange for a stake in the company. Application a document used by employers that asks for information related to employment. It gives the employer standard information about each job applicant. Articles of incorporation a written legal document that defines ownership and operating procedures and conditions for the business. Artificial intelligence (AI) software that enables computers to reason, learn, and make decisions using logical methods similar to the methods humans use to solve complex cognitive challenges. Authoritative management a style of management in which the manager is more direct and controlling. Authority the right to make decisions about how responsibilities should be accomplished. B Balance of payments the difference between the amount of money that comes into a country and the amount that goes out of a country. Balance of trade the difference between a country's total exports and total imports. Bank statement a report on the status of a bank account. Base plus incentive a compensation system which combines a wage or salary with an additional amount based on the employee's performance. Basic economic problem the mismatch of unlimited wants and needs and limited economic resources. Benefits compensation in forms other than direct payment. Blog a website that allows a company to share information in order to not only increase customers' knowledge about its products and services, but also to build trust. Blue-collar workers workers who are involved in physical work, including the operation of machinery and equipment or other production activities. Board of directors the people who make the major policy and financial decisions for the business. Brand a name given to a product or service to distinguish it from other similar and competitive items. Brand name products. a unique identification for a company's Budget detailed plans for the financial needs of individuals, families, and businesses. Budget deficit a financial situation that occurs when a government spends more than it takes in. Budget surplus a financial situation that occurs when a government spends less than it takes in. Budget variance any difference between actual spending and budgeted amounts. economy from one Business cycle the movement of the condition to another and back again. The four phases are prosperity, recession, depression, and recovery. Business ethics rules about how businesses and their employees ought to behave. Business model explains in a systematic and clear way how a business will generate profits and cash flows. Business plan a document that outlines the basic concept underlying a business and how that concept will be realized. Business-to-business (B2B) model a model used by firms that conduct business with other businesses. Business-to-consumer (B2C) model a model used by firms that focus on conducting business with individual consumers. C Capital the value of the borrower's possessions, including money and the property owned. Capital gain the result of a stock increasing in value and then being sold for more than its original cost. ✓ 332 | Glossary Ministry of Education 2024-1446

Capital loss the result of an investment being sold for less than its original cost. Capital resources products and money used to produce goods and services. Capital spending money spent by a business for an item that will be used over a long period. Career a goal for work that is fulfilled through an occupation or series of occupations. Career planning the process of studying careers, assessing yourself in terms of careers, and making decisions about a future career. Code of ethics a set of rules for guiding the action of employees or members of an organization. Command economy an economy in which resources are owned and controlled by the government. Commercial bank a bank that offers a full range of financial services. Commission the amount of money an employee is paid based on a percentage of sales for which he or she is responsible; the fee stockbrokers charge for their services. Common market (economic community) a market in which members do away with duties and other trade barriers. Comparative advantage a situation in which a country specializes in the production of a good or service at which it is relatively more efficient. Compensation the amount of money paid to an money paid to an employee for work performed, including salary and wages. Compensation and benefits the human resource activity involving planning and managing payroll, personnel records, and benefits programs. Competition the rivalry among businesses to sell their goods and services. Competitive advantage a situation when one business is better able to meet a certain need. Competitors businesses offering very similar products to the same customers. Computer-aided design (CAD) the use of technology to create product styles and designs. Computer-assisted instruction (CAI) the use of computers to help people learn or improve skills at their own pace. Conflict of interest a situation in which an action by a company or individual results in an unfair benefit. Consumer a person who buys and uses goods and services. Consumer movement consumers united to demand fair treatment from businesses and to fight against unfair business practices. وزارة التعليم Consumer-to-business (C2B) consumers originate online transactions through price offers to businesses. Consumer-to-consumer (C2C) buying and selling among consumers in cyberspace. Contract an agreement to exchange goods or services for something of value, usually money. Controlling determines to what extent the business is accomplishing the goals it set out to reach in the planning stage. Copyright the protection of the creative work of authors, composers, and artists. Corporate bylaws the operating procedures for the corporation. Corporate governance the system of rules, practices, and processes that outlines how companies are directed and controlled. Corporate Social Responsibility (CSR) a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. Corporation a separate legal entity formed by documents filed with a state. It is owned by one or more shareholders and managed by a board of directors. Credit the privilege of using someone else's money for a period of time. Crowdfunding funding for new ventures in which the general public is invited to donate or invest in the business, in exchange for exclusive perks or early access to the products or services. Crowdsourcing outsourcing tasks to a group of people in order to tap into the ideas of the crowd. Culture the accepted behaviors, customs, and values of a society. D Database with data. an organized collection of information Deficit a financial situation in which actual spending is greater than planned spending. Deflation a decrease in the general level of prices. Delegative management a style of management in which managers are more collaborative and involve employees in decision making. Demand the quantity of a good or service that consumers are willing and able to buy. Depression the phase of the business cycle that is marked by a prolonged period of high unemployment, weak consumer sales, and business failures. Directing a manager's effort to direct and lead people to accomplish the planned work of the organization. Glossary | 333 Ministry of Education 2024-1446

Disruptive technology a novel innovation that challenges the existing status quo through the introduction of new, alternative approaches. Diversity the comprehensive inclusion of people with differences in personal characteristics and attributes. Division of labor a strategy where workers are assigned specific elements of a manufacturing process to improve efficiency and productivity. Domestic business the manufacture, purchase, and sale of goods and services within a country's borders. Downsizing a planned reduction in the number of employees needed in a firm in order to reduce costs and make the business more efficient. E E-business (or electronic business) the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs through the facilities available on the Internet. Economic community See Common market Economic resources things available to be used to produce goods and services. Economic system the method a country uses to answer the three economic questions. Ecopreneurs entrepreneurs with a conscience, who put green and sustainable objectives above personal advancement or profit. Embargo an action imposed by the government to stop the export or import of a product completely. Employee relations responsible for maintaining a safe, healthy, and productive work environment for all employees. Entrepreneur someone who takes a risk in starting a business to earn a profit. Entrepreneurship the process of starting, organizing, managing, and assuming the responsibility for a business. Equity stock ownership. Establishment a business owned and run by just one person. Ethical dilemma a conflict between alternative choices, where each decision can violate ethical principles. Ethics principles of morality or rules of conduct. Exchange rate the value of a currency in one country compared with the value in another. Executives top-level managers with responsibilities for the direction and success of the entire business. Expert influence influence that exists when group members recognize and appreciate a leader's expertise in a specific area. Exports goods and services sold to other countries. External communications communication that occurs between people inside the organization and people outside the organization such as customers, suppliers, and other businesses. External data sources input provided to the management information system from outside an organization, such as from financial institutions, government agencies, and customers. F Factors of production economic resources, including natural resources, human resources, and capital resources. Farmers people who cultivate land and use other natural resources to grow crops and raise livestock for consumption. Financial information information that includes budgets, sales reports, and financial statements. Flexplace a program that allows some employees to complete part or all of their work away from the business site. Flextime a program that allows employees some choice in how their work days and work hours are arranged. Foreign debt the amount a country owes to other countries. Foreign exchange market banks that buy and sell different currencies. Foreign trade See International business Formal communications established and approved ways for information to move between managers, employees, customers, and others in the business. Formal influence power based on a leader's position within the formal structure of an organization. Forum an interactive version of a community bulletin board that focuses on threaded discussions. Fourth Industrial Revolution the rapid development of new technologies in the 21st century. Franchise a written contract granting permission to operate a business to sell products and services in a set way. Franchisee the company purchasing the rights to run the business. Franchiser the company that owns the product or service and grants the rights to another business. Fraud deception of consumers by providing false information in an effort to make a sale. Free-trade agreement an agreement between member countries to remove duties and trade barriers on products traded them. among 334 | Glossary Ministry of Education 2024-1446

Free-trade zone a selected area where products can be imported duty-free and then stored, assembled, and/or used in manufacturing. Full-time employee one who regularly works a schedule of 30 hours or more a week. Functional organizational structure work is arranged within main business functions such as production, operations, marketing, and human resources. G GDP See Gross domestic product GDP per capita the output per person, calculated by dividing gross domestic product (GDP) by the total production. General career skills abilities that can be adapted to varied work situations (also known as soft skills). Global strategy a strategy that uses the same product and marketing strategy worldwide. Goal a precise statement of results the business expects to achieve. Goods things you can see and touch; products you can purchase to meet your wants and needs. Goods-producing industries businesses that produce or manufacture products used by other businesses or purchased by final consumers. Gross domestic product (GDP) the total value of all final goods and services produced in a country during one year. H Home country the country where the headquarters of the multinational company (MNC) is located. Horizontal communications communications that move across the organization at the same level-employee to employee or manager to manager. Host country the country in which the multinational company (MNC) places business activities. Human relations the way people get along with each other. Human resources people who produce goods and services; people who work for a business. Human resources information information that includes salaries, employee benefit data, and employee evaluation. Identity influence influence that stems from the personal trust and respect members have for the leader. Imports products and services that are bought from other countries. وزارة التعليم Improvement a designed change that increases the usefulness of a product, service, or process. Incentive systems compensation systems connected to the quality or quantity of an employee's performance. Inflation a continuous and influential increase in the general level of prices. Influence power that enables a person to affect the actions of others. Informal communications common but unofficial ways that information moves in an organization. Informal influence power resulting from the personal characteristics of a leader rather than the formal structure of an organization. Infrastructure a factor that supports international trade in industrialized countries, including a nation's transportation, communication, and utility systems. Innovation an invention or creation that is brand new. Intellectual property technical knowledge or creative work. It includes software, clothing designs, music, books, and movies. Interest rates the cost of money. When it is high, it means higher business costs for businesses that borrow money. Intermediaries businesses involved in selling the goods and services of producers to consumers and other businesses. Internal communications communications that occur between managers, employees, and work groups. Internal data sources input provided to the management information system from within the organization, such as accounting records, inventory information, and company sales figures. International business business activities that manufacture, ship, and sell goods and services across national borders. Intrapreneur people who work within an existing corporation as an employee and assumes responsibility for converting a new idea into a profitable product, service, or process. They mostly create value for the company, rather than starting their own new business. J Job analysis a specific study of a job to identify in detail the job duties and skill requirements. Job sharing an arrangement in which one job is offered to two people. Each person works a part-time schedule. They share the work space and duties of the job. Joint venture a unique business organized by two or more other businesses to operate for a limited time and for a specific project. It is a type of partnership. Glossary | 335 Ministry of Education 2024-1446

L Labor force all people of working age who are actively working or seeking work. Layoff a type of termination which is a temporary or permanent reduction in the number of employees due to changing business conditions. Leadership the ability to motivate individuals and groups to accomplish important goals. Licensing selling the right to use some intangible property (production process, trademark, or brand name) for a fee or royalty. Lifestyle entrepreneurs entrepreneurs who are less focussed on making profits, and more centered upon the lifestyle that running the business affords them. They might enjoy the perks that come with the job and the experiences of working within a particular sector they are interested in. Limited liability company (LLC) form of business ownership that provides liability protection for owners. It has a simpler set of organizing and operating requirements than a corporation. No articles of incorporation or bylaws are needed. A simple document much like a partnership agreement must be developed. Limited liability partnership (LLP) a partnership that identifies some investors who cannot lose more than the amount of their investment, but they are not allowed to participate in the day-to-day management of the business. Loans borrowed funds obtained through banks and other financial institutions. Logistics managing the acquisition, movement, and storage of supplies, materials, and finished products in a business. Long-term financing money needed for the main resources of a business (such as land, buildings, and equipment) that will last for many years. M Management the process of accomplishing the goals of an organization through the effective use of people and other resources. Management information system (MIS) a coordinated system of processing and reporting information in an organization. Management style the way a manager treats and involves employees. Manufacturers businesses that get supplies from other producers and convert them into products. They sell their products to consumers and other businesses. Manufacturing combining raw materials and processed goods into finished products. Market economy an economy in which the resources are owned and controlled by the people of the country. Market price the point where supply and demand are equal. Marketing the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing and sales information information that includes data on customer needs, current economic conditions, and actions of competitors. Marketing research finding solutions to problems through carefully designed studies involving customers. Marketing strategy a company's plan that identifies how it will use marketing to achieve its goals. Marketplace anywhere that goods and services are exchanged. Media sharing sites a tool for social content, which allow users to upload photos, videos, and podcasts. Middle managers specialists with responsibilities for specific parts of a company's operations. Mission statement short, specific written statement of the reason a business exists and what it wants to achieve. Mixed economy an economy that combines elements of the command and market economies. Mixed management the combined use of tactical and strategic management styles. MNC See Multinational company Monopolistic competition a market situation with many buyers and numerous sellers, offering products that are very similar, but not identical, and all satisfy the same need. Monopoly when a business has control of the market for a product or service. Multinational company (MNC) an organization that does business in several countries. It usually consists of a home country and divisions or separate companies in one or more host countries. Multinational strategy a strategy that treats each country market differently. Firms develop products and marketing strategies that adapt to the customs, tastes, and buying habits of a distinct national market. N Natural resources raw materials supplied by nature. Needs things that are required in order to live. Negative or unfavorable balance of payments the result of a country sending more money out than it brings in. 336 | Glossary Ministry of Education 2024-1446

New benefit ideas start-up ideas centered around providing customers with new or improved products or services, or better ways of performing old functions. New market ideas ideas that provide customers with a product or service that does not exist in a particular market but does exist somewhere else. New technology ideas start-up ideas involving new or relatively new technology, centred around providing customers with a new product or service. Nonprofit corporation a group of people who join to do some activity that benefits the public. Nonrenewable resource a natural resource that cannot be replaced when used up. O Oligopoly an industry situation with a few large sellers. Opportunity cost the value of the next-best alternative that you were not able to choose. Opportunity recognition the ability of entrepreneurs to identify potential new products or services that may lead to promising businesses. Oral communications communications that are spoken directly or by using technology. Organization chart a diagram that shows the structure of an organization, classifications of work and jobs, and the relationships among those classifications. Organizational culture the environment in which people work, made up of the atmosphere, behaviors, beliefs, and relationships. Organizing the function of a manager that involves identifying and arranging the work and resources needed to achieve the goals that have been set. Outsourcing removing work from one company and sending it to another company that can complete it at a lower cost. P Partnership a business owned and controlled by two or more people who have entered into a written agreement. Partnership agreement a written agreement among all owners detailing the rules and procedures that guide ownership and operations. Part-time employee one who works a schedule with either fewer hours each day or fewer than 30 hours each week. Patent the exclusive right of an inventor to make, sell, and use a product or process. Perfect (or pure) competition exists when there are many buyers and sellers of a product. No single buyer or seller can affect the price of the product. Performance management evaluating the work of employees and improving performance through training and development. Personal income the net salaries and wages as well as investment income that individuals receive. Personal time a few hours each month that can be scheduled for non-job activities. Piece rate a pay-for-performance plan in which an employee receives a specific amount for each unit of work produced. Piracy stealing or illegally copying software packages or information. Pitch an oral presentation or video presentation of the business idea to investors. Pivot refocusing a start-up as it develops or completely recreating it if the initial concept turns out to be seriously flawed. Planning the function of a manager that involves analyzing information, setting goals, and making decisions about what needs to be done. Planning and staffing activities activities directed at identifying and filling all of the jobs in the company with qualified people. Podcasts digital audio or video files that people listen to or watch online on tablets, computers, smartphones, or other mobile devices. Policies guidelines used in making consistent decisions. Position influence the ability to get others to accomplish tasks because of the position the leader holds. Positive or favorable balance of payments occurs when a nation receives more money in a year than it pays out. Procedure a list of steps to be followed for performing a particular work activity; a description of the way work is to be done. Producers individuals and organizations that determine what products and services will be available for sale. Product everything a business offers to satisfy a customer's needs. Product costs costs to the manufacturer of producing the product or the price paid by other businesses to buy the product. Production and inventory information information that includes production summaries, lists of tools and supplies, and finished goods reports. Productivity the production output in relation to a unit of input, such as a worker. Profit portion of revenue left over to the business after all expenses and liabilities have been paid. وزارة التعليم Ministry of Education 2024-1446 Glossary | 337

Promotion any form of communication used to inform, persuade, or remind; communicating information about products and services to potential customers; the advancement of an employee to a position with greater responsibility. Proprietorship a business owned and run by just one person. Prosperity the peak of the business cycle, it is a period in which most people who want to work are working, businesses produce goods and services in record numbers, wages are good, and the rate of gross domestic product (GDP) growth increases. Q Quota a government-set limit on the quantity of a product that may be imported or exported within a given period. R Recession the phase of the business cycle in which demand begins to decrease, businesses lower production, unemployment begins to rise, and gross domestic product (GDP) growth slows for two or more quarters of the calendar year. Recovery the phase in the business cycle in which unemployment begins to decrease, demand for goods and services increases, and gross domestic product (GDP) begins to rise again. Résumé a tool that provides information about you to a potential employer. Retail sales the sales of durable and nondurable goods bought by consumers. Retailers the final business organizations in an indirect channel of distribution for consumer products. Revenue all income that a business receives over a period of time; government income. Revenue stream a source of sales revenue flowing into a firm. Reward influence influence that results from the leader's ability to give or withhold rewards. Risk the possibility of incurring a loss. Robotics mechanical devices programmed to do routine tasks, such as those in many factories. S Salary and wages direct payment of money to an employee for work completed. Sales promotion activities and materials designed to reinforce a company's brand and image. It is also a direct incentive to take an action likely to immediately increase sales of a product or service. 338 | Glossary Ministry of Education 2024-1446 Saving the storage of money for future use. Savings rate the percentage of total income that is saved. Scalable start-ups entrepreneurs who have big ideas with the potential to go global quickly through rapid expansion. Many social media platforms and online delivery services are examples. Scarcity need. not having enough resources to satisfy every Selling communicating directly with potential customers to determine and satisfy their needs. Selling price the price paid by the customer for the product. Serial entrepreneurs entrepreneurs who build up new businesses quickly, then sell them on and use the profits to start again with a new venture. Service business a business that provides services requested by customers. Service-providing industries businesses that perform services that satisfy the needs of other businesses and consumers. Services activities provided for the satisfaction of others that are consumed at the same time they are produced. Shareholders members of credit unions. Short-term financing the money needed to pay for the current operating activities of a business. Short-term financing is obtained for a period of less than a year and often for one or two months. Small business a business with 6-49 full-time employees and a SAR 3-40 million in revenue. Social audit a comprehensive report of what an organization has done and is doing with regard to social issues that affect it. Social content sites the online interactions that allow people and businesses to communicate and share ideas, personal information, and information about products and services. Social entrepreneurship an approach that focuses on a social purpose that's integral to the company. Social game a real-time multiplayer activity in a virtual environment in which players can participate with others in an online community. Social media the online interactions that allow people and businesses to communicate and share ideas, personal information, and information about products and services. Social media communities groups of people who share common interests and who want to engage in conversations about issues they consider important or interesting. Social media community manager a high-level executive who is responsible for all of a company's social media activities.

Social media marketing the utilization of software, computer technology, and the Internet to provide information about a firm's products and services, increase sales revenues, and improve customer service for a business. Social media sites allow companies to create and share information about their products and services via blogs, videos, and photos. Solopreneurs entrepreneurs who work on their own to achieve their aims. Span of control the number of employees who are assigned to a particular work task and manager. Specialization of labor the training of workers to do a specific task. Staffing the function of a manager including all of the activities involved in obtaining, preparing, and compensating the employees of a business. Start-up financing the amount of money needed to open the business. Start-ups businesses that did not exist before entrepreneurs created them. Stock ownership in a company or government entity. Stock exchange a business organization that accommodates the buying and selling of securities. Stockholder someone who owns stock in a corporation. Straight salary a specific amount of money paid to an employee for each week or month worked. Sukuk a certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified due date. (Known as a bond in some countries.) Supermarket in food retailing, it is the large, full-service store that carries name brands. Superstores discount stores that have expanded to include a wide variety of food products. They may also include other retail services such as a bakery, restaurant, pharmacy, and banking. Supervisors the first level of management in a business, responsible for the day-to-day work of a small group of employees and for carrying out some non-management duties. Supplier credit credit that companies selling equipment, materials, or inventory to other businesses offer if those businesses do not have financial problems. Supply the quantity of a good or service that businesses are willing and able to provide. Supply chain all businesses involved with a product from the time raw materials are obtained until the finished product is sold. Surveys a marketing research study that gathers information from people using a carefully planned set of questions. وزارة التعليم T Tariff a tax that a government places on certain imported products. Tax a charge imposed by a government to finance public services. Tax records financial documents that show all taxes collected, owed, and paid. Technical skills the skills needed for a specific profession (also known as hard skills). Technology the use of automatic machines, electronic equipment, and integrated computer systems to help increase the efficiency of producing goods and services. Temporary employee one hired for a specific time or to complete a specific assignment. Termination the end of an employment relationship between a company and an employee. Time wage a specific amount of money paid to an employee for each hour worked. Trade associations an association of people or companies in a particular business or trade that promotes the common interests of the members. Trade barriers restrictions to free trade. Trade deficit a situation in which a country imports (buys) more than it exports (sells). Trade surplus a situation in which a country exports (sells) more than it imports (buys). Trade-off what you make when you give something up to have something else. Traditional economy an economy in which goods and services are produced the way they have always been produced. It is used in countries that are less developed and are not yet participating in the global economy. Transfer the assignment of an employee to another job in the company with a similar level of responsibility. U Unemployment rate the portion of people in the labor force who are not working. Unity of command a clear reporting relationship for all staff of a business. V Values rules and principles which focus on ethical criteria that are important to you. Venture capital money provided by large investors to finance new products and new businesses that have a good chance to be very profitable. Vertical communications communications that move up or down in an organization between management and employees. Glossary | 339 Ministry of Education 2024-1446

W Wants things that add comfort and pleasure to your life. Warranty a promise by the manufacturer or dealer, usually in writing, that a product is of a certain quality. Whistle-blowing is informing government officials and related parties about unethical practices within an organization. White-collar worker one whose work is more mental than physical and involves the handling and processing of information. Wiki a collaborative online working space that enables members to contribute content that can be shared with other people. With wikis, members of the community are the editors and gatekeepers ensuring that the content is correct and updated. Work committee a group of employees who communicate with employers about issues affecting workers, such as working conditions and health and safety. Work environment the physical conditions and the psychological atmosphere in which employees work. Workforce all of the people 16 years or older who are employed or who are looking for a job. World trade See International business Written communications communications that include notes, letters, reports, and text or graphics. Y Yield the percentage of money earned on savings or investment over a year. ✓ 340 | Glossary Ministry of Education 2024-1446