STUDY GUIDE FOR THE EXAM ON
INTRODUCTION TO THE WORLD OF BUSINESS I.
(Fall 2015 – Updated on December 10, 2015)
List of Terms and Expressions I: General Introduction
 business (definition, purpose)
 classification of businesses
 sectors of the economy (primary, secondary, tertiary and quaternary sectors)
 private and public sectors
 sole proprietorship (advantages, disadvantages)
 partnership (advantages, disadvantages)
 corporation (advantages, disadvantages)
 limited/unlimited liability
 general partnership
 limited partnership
 general/limited partners
 legal personality
 incorporation
 private limited company
 public limited company
 memorandum of association, articles of association
 stocks, shares
 dividend
 annual general meeting
 board of directors
 managing director, CEO, President
 liquidation, winding up
 double taxation
 cooperatives
 nonprofit organizations
 franchise
 offshore company
 turnover
 functions of businesses (5 main functions)
 entrepreneurship
 venture
 traits of entrepreneurs
List of Terms and Expressions II: Management and Organization;
III: Economy and Economics
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management (definition)
shareholders
Board of Directors
senior management
CEO, CFO, COO, CIO
management functions: planning, organizing, leading, controlling
business resources
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delegation and motivation
levels of management
first-line, middle, and top managers
areas of management
autocratic, democratic, free-rein leadership styles
teams
managerial structures
line authority, line and staff authority
centralized vs. decentralized organization
departmentalization
economics (definition)
micro and macroeconomics (definition)
goods and services
wants and needs
scarcity
economic resources (natural, labor, capital, entrepreneurial)
market economy
command economy
mixed economy
supply and demand
pure competition
monopolistic competition
oligopoly
monopoly
measuring economic activity/performance
GDP
standard of living
unemployment rate
rate of inflation
business cycle (4 stages)
fiscal and monetary policy
List of Terms and Expressions IV: Marketing
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definition of marketing
goals of marketing
relationship marketing
the marketing environment and the 7 major forces
discretionary income
buyer’s power
SWOT analysis
PEST analysis
Porter’s Five Forces analysis
the marketing mix
4Ps
Types of promotion
7Ps
positioning
branding
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direct and indirect distribution
market research
target market
market segmentation
product life cycle – 4 stages
advertising – definition
informative vs. persuasive advertising
infomercials
transit advertising
new forms of online advertising
endorsement
product placement
List of Terms and Expressions V: Finance
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Financial management – definition
Scope of Financial Management
CFO
Treasurer
Controller
Goal of Financial Management
NYSE
NASDAQ
securities
cash flow
Primary and Secondary Markets
over-the-counter deals (OTC deals)
Dow Jones
capital stock
stocks and shares
common vs. preferred stocks
dividend
shareholder
IPO
bond
the bond issuer and holders
underwriter of stock
bear vs. bull market
to quote a bid
principal
maturity
hedge funds
accounting, bookkeeping, and auditing (differences)
financial statements: balance sheets, income statements, cash flow statements,
statements of shareholders’ equity
assets, liabilities and shareholders’ equity
current assets
noncurrent assets
fixed assets
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tangible and intangible assets
goodwill
accounts receivable and payable
current and long-term liabilities
List of Terms and Expressions VI: Globalization and Sustainable Development
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globalization: definition
the controversy over globalization: pro and contra
McDonaldization
International Monetary Fund, World Bank
Greenpeace
the political, social, environmental and cultural dimensions
sustainable development: definition
the Brundtland Report
G8
List of Terms and Expressions VII: Business Etiquette and Ethics (based on Louis
Mattia’s talk and material he made available at Éva Mathey’s ieas website)
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definition of business etiquette
etiquette vs. manners
code of conduct
dos and don’ts of office behavior
fields affected by business etiquette (communications, behavior, handshakes,
meetings, privacy, as a boss, as an employee, dress and fashion, etc.)
 cross cultural differences and etiquette (China, Germany, etc.)
 Geert Hofstede’s dimensions of cultural differences
 business ethics
List of Terms and Expressions VIII: Five Keys to s Successful Business Career (based
on Louis Mattia’s talk and material he made available at Éva Mathey’s ieas website)
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business
asset, stock, goodwill
agenda
the FIVE P’s of professionalism
to synergize
Blake-Mouton Leadership Grid (country club, team, impoverished, authoritycompliance management)
 Meyer-Briggs character analysis
 7 habits of highly successful people
List of Terms and Expressions VIII: Human Resources and Recruitment
 hiring
 recruiting and filling vacancies
 get short-listed
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R&D
incentives and motivation
headhunting
CV pool
Dos and Don’ts of CV writing
job interview etiquette
downsizing
to lay off people
payroll
CI: continuous improvement
roles of HR: create and define structures and guidelines, initiate and drive, coach
managers, supply administration and reports
 L&D: learning and development
 benchmarking, benchmark analysis
 ROI (Return On Investment)
List of Terms and Expressions: From the Guest Lecture
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RDI (Research, Development and Innovation)
innovation
start-up
cultural awareness
intercultural awareness
company core values
B2B (business to business) and B2C (business to customer)
 high mix-low value vs. low-mix high value