BF10 Business Essentials EOC Review 1.01 KEY TERMS Ethics: The basic principles that govern your behavior. Ethical Situation: An issue in which you must decide whether something is right or wrong Ethical Principles: Standards that govern behavior; not dependent on circumstance. ● Integrity: Adhering to an established set of personal ethics and sound moral principles; acting with honesty in all situations ● Trustworthy : Reliable; deserving the confidence of others ● Accountability: The condition of having to answer for or be liable for your actions; accepting responsibility for your decisions ● Transparency: The quality of being just as one seems; being open and truthful when communicating ● Fairness: The ability to make judgments without favoritism or self-interest; engaging in fair competition and creating equal relationships ● Respect: Regard or esteem; honoring the rights, freedoms, views, and property of others ● Rule of Law: Complying with laws and regulations ● Viability : The long-term value of your choices Ethics are the basic principles that govern your behavior. Following ethical principles means your ethical beliefs don’t change when you’re in a new situation. Ethical issues deal with right and wrong choices. Being unethical can lead to consequences such as lost trust, legal problems, a poor reputation, and setting a bad example Ethical principles help people make ethical decisions. 1.02 KEY TERMS Dilemma: A difficult situation in which you are required to make a decision Ethical dilemma : An issue in which you must decide whether something is right or wrong; sometimes referred to as an ethical situation. ● In an ethical dilemma, if you pick the wrong choice, someone (or something) could be harmed. Ethical dilemmas exist everywhere, even in your day-to-day life. ● To recognize ethical dilemmas, ask yourself three questions: Could someone be hurt? Is there a right and wrong choice? Are ethical principles being violated? The process of responding to ethical dilemmas includes identifying the dilemma, getting the facts, figuring out who’s affected, considering all your potential actions, checking your gut feeling, making and implementing your decision, and reflecting on the outcome. Arrogance : An inflated sense of self-importance Consequence: The result of an action Intuition: Instinct; gut feeling ● You can make the correct ethical decisions by living according to your ethical code, being your own person, being on your best behavior, thinking about the 1 long-term repercussions of your actions, following the law, being trustworthy, and respecting others. Role model: A person whose behavior is imitated by others Causes of ethical dilemmas: ● pressure from others, the desire to prove yourself, conflicting values, greed, bad role models, and a lack of consequences. 2.01 KEY TERMS Consumers: People who use goods and services to satisfy their wants Producers: The people who make or provide goods and services ● Raw-goods producer: A type of producer that provides goods in their natural state ● Manufacturer: A type of producer that changes the shapes or forms of materials so that they will be useful to consumers ● Builders: A type of producer that constructs roads, bridges, buildings, houses, etc. Trade industries: Businesses that buy and sell goods to others; retailers and wholesalers ● Retailer: A business that buys consumer goods or services and sells them to the ultimate consumer ● Wholesalers: Intermediaries who help move goods between producers and retailers by buying goods from producers and selling them to retailers Service business: A type of business that performs intangible activities that satisfy the needs and wants of consumers or industrial users ● Brick and mortar: A business that operates out of a physical facility (instead of online) ● E-tailers: Retailers who operate solely online Social responsibility: The duty of business to contribute to the well-being of society ● Most businesses recognize that they have a social responsibility, or a duty to contribute to the wellbeing of society. Businesses demonstrate social responsibility in two ways—by maximizing their profits and by contributing to public interests. Businesses are responsible to their product users, the community, their employees, and themselves. 2.02 KEY TERMS Economics: The study of how to meet unlimited, competing wants with limited resources ● Need: Something required or essential that is lacking Want: A desire for something that is not required ● Economic want: A desire for something that can only be satisfied by spending money ● Noneconomic want: Desires for things that can be obtained without spending money 2 Economic goods: Physical objects that are useful, scarce, and transferable and which satisfy economic wants Economic services: Productive acts that are useful, scarce, and transferable and which satisfy economic wants We all have wants—desires for things that we may or may not actually require. The economy depends on consumers and producers buying and producing goods and services. Consumer goods and services : Products produced for personal consumption ● Classifications of consumer products include convenience, shopping, specialty, and unsought products. Industrial goods and services: Products purchased by producers for resale, to make other goods and services, and/or to use in business operations ● Classifications of industrial products include materials, parts, installations, equipment, and supplies. Economic resources : The human and natural resources and capital goods used to produce goods and services Economic resources are items that can be used to produce goods and services. They enable businesses to operate. Without them, there would be no production. ● Natural resources : Items found in nature that are used to produce goods and services ● Human resources: People who work to produce goods and services ● Capital goods: Manufactured or constructed items that are used in the production of goods and services ● Factors of production: Productive resources; human and natural resources and capital goods Natural resources, human resources, and capital goods are all limited for a number of reasons. Because economic resources are limited, businesses take a variety of steps to make up for the shortages. Scarcity: A condition resulting from the gap between limited resources and unlimited wants for goods and services Opportunity cost: The benefit that is lost when you decide to use scarce resources for one purpose rather than for another Trade-off: Giving up all or a part of one thing in order to get something else Because of scarcity, we must economize, consider the opportunity costs of our decisions, and make trade-offs. To use scarce resources efficiently, societies must decide what will be produced, how products will be produced, and how products will be allocated Consumption: The process or activity of using goods and services; The economic process or activity of using goods and services Production: The economic process or activity of producing goods and services Exchange: The economic process of trading one good/service for another 3 Distribution: The economic process or activity by which income is divided among resource owners and producers The desire for goods, services, and resources has made members of societies dependent upon each other. As a result, goods, services, and resources must move from one individual to another. This movement is possible because of consumption, production, exchange, and distribution. The monetary values attached to these goods, services, and resources depend on productivity, demand, and availability or supply. Demand: The quantity of a good or service that buyers are ready to buy at a given price at a particular time Law of demand: Economic principle which states that the quantity of a good or service that people will buy varies inversely with the price of the good or service Supply: The quantity of a good or service that sellers are able and willing to offer for sale at a specified price in a given time period Law of supply : Economic principle which states that the quantity of a good or service that will be offered for sale varies in direct relation to its price Law of supply and demand: Economic principle which states that the supply of a good or service will increase when demand is great and decrease when demand is low Supply and demand have a tremendous impact on price. Generally, as the price for a product decreases, demand for the item goes up, but the quantity that producers are willing to supply goes down. On the other hand, as a product’s price goes up, the quantity supplied also increases. But because some consumers are not willing or able to pay more for the product, demand declines. Equilibrium: The point at which the quantity supplied is equal to the quantity demanded Excess demand : The situation that exists when demand is greater than supply Excess supply : The situation that exists when supply is greater than demand The equilibrium price, or market-clearing price , is the price that allows all suppliers to sell the amount they are willing and able to sell, and all buyers to purchase the amounts they are willing and able to purchase. Excess supply creates a buyer’s market , while excess demand results in a seller’s market . Changes in relative prices cause some buyers to substitute the purchase of one product for another, known as the substitution effect . Market price is the actual price that prevails in a market at any particular moment. In our economy, prices rise and fall in response to changing demand and supply. Elasticity: An indication of how changes in price will affect changes in the amounts demanded and supplied ● Price: The amount of money paid for a good, service, or resource ● Elastic demand: A form of demand for products in which changes in price correspond to changes in demand (wants-luxury) ● Inelastic demand: A form of demand in which changes in price do not affect demand (needs for survival) The economic principle of supply and demand determines what goods and services will 4 be available and how much they will cost. Also, understanding how supply and demand interact is basic to understanding how prices are determined. Prices indicate values that consumers place on products. The price that a consumer will pay depends on the value placed on the product, how much money is available to spend, and relative prices. The functions of relative prices include information, incentives, and rationing. Relative prices determine what is produced or available for consumers, how products are produced, and who gets the goods and services produced. 2.03 KEY TERMS Economic system: The organized way in which a country handles its economic decisions and solves its economic problems ● Traditional economy: An economic system in which people produce only what they must have in order to exist; all economic decisions are based on habit and tradition ● Command economy: An economic system in which all or many of the means of production and distribution are owned and controlled by the government ○ Communism: A command economic system in which the government controls the economic system and does not allow private ownership of the means of production and distribution ○ Socialism: A modified command economic system in which government owns the basic means of production and allows private ownership of businesses as well ● Market economy: An economic system in which the questions of what, how, and for whom goods will be produced are answered by individuals and businesses in the marketplace Each economic system contains resources, markets, participants, and a medium of exchange. Economic systems are needed because no country has enough resources to supply everything its people want or need and people are interdependent. While most countries could not function without an economic system, every economic system has its problems. 2.04 KEY TERMS Private enterprise/free enterprise: An economic system in which individuals and groups, rather than the government, own or control the means of production–the human and natural resources and capital goods used to produce goods and services ● Characteristics of a private enterprise system include freedom in the marketplace, private property, limited government control, competition, the profit motive, and the price-directed system. Disadvantages of private enterprise include periods of unemployment, poverty, and unequal distribution of wealth. ● Economic freedoms in private enterprise include the freedom to choose your economic goals and the type of work you do, the freedom to make decisions about private property, and the freedom to compete. Limits to economic freedom include competition among buyers, personal choices, certain laws, and taxes. 5 Entrepreneur: An individual who: invents, develops, and distributes a good or provides a service; assumes the risks of starting and building a business; and receives personal and financial rewards for her/his efforts Small business: A business that employs 500 or fewer people 2.05 KEY TERMS Profit: Monetary reward a business owner receives for taking the risk involved in investing in a business; income left once all expenses are paid ( income - expense = profit ) ● Income : The money received by resource owners and by producers for supplying goods and services to customers ● Gross profit: Money left after the cost-of-goods expense is subtracted from total income ( income from sales - cost of goods = gross profit) ● Net profit : Money left after the cost-of-goods expense and the operating expense are each subtracted from the total income ( gross profit - operating expense = net profit ) Making a profit provides both motivation and satisfaction for businesses. In general, profit meets consumers’ needs, provides employment opportunities, and strengthens the economy. Without profit, businesses could not last very long. Expenses: The money that a business spends ● Cost of goods: The amount of money a business pays for the products it sells or for the raw materials from which it produces goods to sell; the amount of money a business pays for the products (or for any part of the products) it sells ● Operating expenses: All of the expenses involved in running a business To understand how to increase profit, you need to examine both the external and internal factors that influence it. While external factors include the economy, demand, and chance, internal factors include expenses and pricing. By decreasing expenses and increasing sales, an owner can increase the chances of receiving increased profit—and increased satisfaction, as well. Economic risks: The possibility of loss or failure that occurs as a result of the economy Business risk : The possibility of loss (failure) or gain (success) inherent in conducting business ● Human risks: The possibility of loss or failure from human error ● Natural risks : The possibility of loss or failure from nature ● Pure risks: Chances of loss that carry with them the possibility of loss or no loss ● Speculative risks : Chances of loss that may result in loss, no change, or gain Classifications of business risk include hazard, operational, strategic, and financial. All business risks are either pure (insurable) or speculative (not insurable). Avoidance : A risk-response strategy that involves choosing not to do something that is considered risky 6 Reduction: A risk-response strategy that involves trying to reduce the chance of loss or severity of loss Transfer: A risk-response strategy that involves moving the impact of a risk to someone or something else Retention : A risk-response strategy that involves assuming responsibility for the risk rather than transferring it Businesses take risks only when they feel that the risks are worth it. To handle risks, businesses choose to avoid, prevent/control, transfer, or retain them. Profit motive: The desire to make a profit, which moves people to invest in business Competition : The rivalry between two or more businesses to attract scarce customer dollars ● Price competition : A type of rivalry between or among businesses that focuses on the use of price to attract scarce customer dollars ● Nonprice competition : A type of rivalry between or among businesses that involves factors other than price ● Direct competition : Rivalry between or among businesses that offer similar types of goods or services ● Indirect competition: Rivalry between or among businesses that offer dissimilar goods or services Competition is essential in a private enterprise system, and it benefits businesses, customers, and society. Among other things, it keeps profits up, prices down, quality good, production efficient, and the standard of living high. Market structure: The type of market, or environment, in which businesses operate ● Monopoly: A type of market structure in which a market is controlled by one supplier, and there are no substitute goods or services readily available ○ Regulated monopolies: A monopoly that the government allows to exist legally under controlled conditions ● Oligopoly : A market structure in which there are relatively few sellers, and industry leaders usually determine prices ● Perfect competition: A market structure in which there are many businesses selling a lot of identical products for about the same price to many buyers; also known as pure competition A market structure is the type of market, or environment, in which businesses operate, and it is primarily based on the number of sellers in the market. The U.S. government has passed several pieces of legislation to promote competition. 3.01 KEY TERMS A business i s an organized effort to produce and/or distribute goods and services. Businesses can operate for profit, or they can be nonprofit entities. All businesses must accomplish certain 7 things. Primary business activities include financial analysis, human resources management, information management, marketing, operations, and strategic management. ● Financial analysis: The process of planning, maintaining, monitoring, controlling, and reporting the use of financial resources ○ Accounting: keeping accurate and useful financial records; and analyzing and interpreting the recorded information. ● Human resources management: The process of planning, staffing, leading, and organizing the employees of the business ● Information management: The process of accessing, processing, maintaining, evaluating, and disseminating business knowledge, facts, or data ● Marketing: The process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large ● Operations: The day-to-day activities required for continued business functioning ● Strategic management: The process of planning, controlling, and organizing an organization or department All businesses must rely on the integration of the primary business activities to reach specific goals. Business changes, outsourcing, and virtual services do not diminish the need for primary business activities—they simply require the business to adjust the activities accordingly. ● Outsourcing: involves using outside organizations or consultants to perform one or more of the primary business activities. ● Production: The process or activity of producing goods and services 3.02 KEY TERMS Human resources are the people who work to produce goods and services. Human resources management is the process of planning, staffing, leading, and organizing employees. ● Management function: Groups of activities related to management (i.e., planning, organizing, staffing, directing, and controlling) ● Planning: The management function of deciding what will be done and how it will be accomplished ● Staffing : A human resources management activity that involves recruiting, interviewing, hiring, orienting, and dealing with job changes for a company’s employees ● Directing: The management function of providing guidance to workers and work projects ● Controlling: The management function that monitors the work effort ● Organizing: The management function of setting up the way the business’s work will be done 8 Main HR management activities include staffing, compensation and benefits, training and development, compliance, and employee relations. ● Benefits: Advantages or payments employees receive in addition to their wages (e.g., sick time, holiday pay, health insurance) ● Compliance: Fulfilling the requirements of the law ● Professional development: Steps that an individual takes to enhance or improve skills or traits that are needed to excel in her/his career/profession Management is the process of coordinating resources to accomplish an organization’s goals, and managers are the people who make things happen. To be effective, they must have technical skills, interpersonal skills, and conceptual skills. ● Conceptual skills: The ability to see the “big picture” and think about how things will work together ● Interpersonal skills: The ability to communicate, interact, and build relationships with others ● Technical skills: Ability to understand the specialized aspects of jobs Management is divided into three levels: top level (executive), mid level (middle), and the first line (supervisory). Management is responsible for managing a business’s resources, including human resources, financial resources, material resources, and information. Material resources: Equipment and supplies used by businesses in their operation ● First-line management: Supervisors who work directly with the employees who carry out the business’s routine work ● Mid-level management: Managers who report to top-level management and who have supervisors who report to them ● Top-level (executive) management . Managers responsible for the operation of the entire organization. They are the owners, chief executive officers, presidents, chief financial officers, vice presidents, and general managers. ○ Strategic planning: Long-range planning (three to five years) for the company as a whole ○ Tactical planning: Short-range planning (one year) of specific actions the business will take Managing information appropriately helps businesses achieve success. Information should be retrievable, accurate, accessible to the right people, up to date, complete, and usable. Companies should set and follow organizational information management practices, prioritize according to business needs, integrate the program throughout the entire organization, and assign responsibility to the right people. Information management: The process of accessing, processing, maintaining, evaluating, and disseminating knowledge, facts, or data for the purpose of assisting business decision making 9 ● Information : Knowledge, facts, or data presented in a useful form ● Data processing: Converting facts and figures into useful information Management information system (MIS): An integrated technology that assists with an organization’s information management needs Proprietary information: Private information that belongs to an organization and cannot be released to the public Trade secret: Undisclosed information within a particular business or industry Information management can be challenging due to employees’ misunderstandings, information overload, companies’ unique needs, and constant change in the business world. Risks involved with information management include being unprepared for audits or lawsuits, dealing with privacy and security issues, being unprepared for a disaster, going over on time and budget, and facing technology issues. The trends currently affecting information management include increased compliance laws and regulations, increased competition, increased number of electronic documents, increased distribution of the workforce, and increased use of outsourcing. 3.03 KEY TERMS Positive customer relations makes customers feel important and connected to the company. It exceeds their expectations. Customer relations is important because it helps satisfy today’s tough-to-please customers, helps a business compete, helps create loyal customers, helps generate word-of-mouth promotion, increases productivity, and creates a positive working environment. ● Customer relations: All the activities a business engages in to interact with its customers ● Customer service: Activities and benefits provided by a business to its customers to create goodwill and customer satisfaction ● Corporate culture: The values and ideals that an organization encourages among its employees ● Customer loyalty: The customer’s preference for a business; usually expressed in regular purchases from the business ● Customer-centric: Focused on customer needs and wants ● Internal customers: The people (i.e., employees) who work cooperatively together to achieve business goals ● Patronage: Loyalty to a particular business ● Proactive: Adapting to the environment in advance of the occurrence of events; taking advantage of opportunities rather than reacting to problems ● Word-of-mouth promotion: Promotion for a business provided by customers who tell others of their satisfaction with the business Certain factors affect a business’s customer relations, including business processes, business environment, technology, and people. Tips for building positive customer relations include being customer-centric, paying attention to internal customers, communicating, resolving complaints quickly and satisfactorily, being thankful, 10 displaying courtesy and professionalism, keeping promises, being helpful, and remembering touchpoints. ● Customer-centric: Focused on customer needs and wants ● Courtesy: Polite behavior; good manners ● Touchpoints: All the opportunities that businesses have to connect with customers and reinforce their brand value 4.01 KEY TERMS The purpose of accounting is to control finances. Businesses use accounting to keep track of their performance, what they own, and what they owe. They also use accounting to plan for the future. Several groups use a business’s accounting information. These include the business’s managers, who use managerial accounting information, as well as investors, creditors, and the government, who all utilize financial accounting information designed for users outside the business. ● Accountant: An individual who has had specialized training in accounting procedures ● Accounting: The process of keeping financial records ● Accounting cycle: A process or series of steps that businesses complete to maintain their financial records effectively ● Accounting standards: Rules that accountants must follow when preparing financial statements Financial statement: A summary of accounting information ● Balance sheet: A financial statement that captures the financial condition of the business at that particular moment (Assets = Liabilities - Owner’s Equity) ○ Assets: Anything of value that a business owns ○ Liabilities : are debts that the business owes. ○ Owner’s Equity : the amount the owner has invested in the business, plus or minus profits and losses. ● Cash flow statement: A financial summary with estimates as to when, where, and how much money will flow into and out of a business ● Income statement: A financial summary that shows how much money the business has made or has lost; also called the profit-and-loss statement (Net Worth = Income - Expenses) ○ Income : Money received by a business or an individual from outside sources ○ Expenses: The monies that a business spends; also called expenditures ○ Net worth : The total value of the business An accounting system is the process used in handling the business’s financial information. To be effective, the system should be easy to use, process data quickly, be expandable and affordable, and protect the business. The steps in the accounting cycle involve analyzing financial transactions, journalizing transactions, posting to ledgers, balancing the books, preparing financial statements, and closing the books. 11 Finance: In business, the function that involves all money and money management matters. The finance and accounting functions are closely related but distinct in several ways. The main finance activities are the administration of assets and the acquisition of funds. Finance serves many important purposes within a business, including helping to set goals for the future and planning and controlling the company’s spending. Every part of the company is tied to finance in some way or another. ● Acquisition of funds: Finance activity involving making decisions about financing ● Administration of assets: Finance activity involving making decisions about a firm’s investments ● Capital investment decisions: Decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether to pay dividends to shareholders ● Dividends : A sum of money paid to an investor or stockholder as earnings on an investment 4.02 KEY TERMS Operations managers are concerned with efficiency and effectiveness. Operations activities include production planning, site selection and layout, purchasing, quality control, inventory control, logistics, routing, scheduling, safety and security, maintenance and repairs, and expense control. Operations: The day-to-day activities for continued business functioning ● Inventory: All the stock that a business has on hand ● Inventory control : Tracking the amount, the kind, and the value of inventory that a business has on hand ● Logistics: Refers to managing the flow of goods and services from production to consumption ● Purchasing: The buying of goods and services for a business ● Quality control: Ensuring the degree of excellence of a good or service ● Routing: The production activity that determines the sequence of the steps in the production process ● Scheduling: The production activity that establishes the timetable to be followed in production The product a business creates affects every aspect of the operations function. Service businesses rely on operating systems just as producers and retailers do. Operations managers use a variety of different technologies to do their jobs more efficiently and effectively. Operations is an important function that impacts the entire business. ● Bottom line: A business’s net income; the decisive point ● Holding cost: The money it takes to keep inventory in stock ● Inputs: Resources ● Outputs: In the operations function, goods, or services ● Timing: In the production process, determining when materials will arrive at a certain destination and how long they will stay there 12 4.03 KEY TERMS Marketing, which links producers with the customers who want to buy their products, involves a wide range of interrelated activities. These include planning the logistics of the marketing process, finding out who customers are and what they want, offering the products customers want, determining how much to charge for the products, communicating with customers, and putting products where they need to be. Almost anything—goods, services, organizations, events, places, ideas, and people—can be marketed, in almost any situation, by almost anybody. ● Advertising: Any paid form of nonpersonal presentation of ideas, goods, or services ● 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 ○ Place: Marketing element focusing on considerations in getting a selected product in the right place at the right time ○ Price: Marketing element requiring marketers to determine the amount of money they will ask in exchange for their products ○ Product: Marketing element referring to what goods, services, or ideas a business will offer its customers ○ Promotion: A marketing function needed to communicate information about goods, services, images, and/or ideas to achieve a desired outcome ● Personal selling: The form of promotion that determines client needs and wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities ● Publicity: Any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual that benefits from or is harmed by it Marketing plays an important role throughout the world as well as in our businesses and communities. It makes our lives better, provides us with a variety of goods and services, and encourages trade among nations. Without marketing, it would be difficult for producers to connect with customers and vice versa. Without marketing, even your own daily routines would be markedly different. 5.01 KEY TERMS Cloud storage: Online storage that enables users to upload, store, and access their files via the Internet; users’ files are maintained by a third-party at a remote database storage facility Cookies: Text files that are put on a website visitor’s hard disk and then later retrieved during subsequent visits to the site in order to track internet behavior. Mechanisms used by websites to track users’ browsing histories. 13 Information system: set of coordinated network of components, which act together towards producing, distributing and or processing information. Information technology: integration of computers with telecommunication equipment for storing, retrieving, manipulating and storage of data. ● Hardware: The physical components of a computer system (e.g., the central processing unit, hard drive, modem) ● Software: Programs that instruct computers to perform specific operations ● Data: Facts and figures ○ Database: Computerized storage for information and facts ○ Data migration: the process of transferring data between storage types, formats, or computer system ○ Data processing: Handling information, especially facts. Converting facts and figures into useful information. Analyzing collected facts and figures and putting them into formats useful to a business. Intranet: An internal network similar to the Internet that is accessible only by authorized personnel; used to access information and communicate with others within an organization. A computer network that is restricted to the organization it serves; an internal Internet. 5.02 KEY TERMS Computer system: consists of hardware (physical parts of the computer) and software (programs and data used with the physical computer). ● Input devices: keyboards, mouse, scanners, cameras, joysticks, and microphones; a piece of equipment used to provide data and control signals to an information processing system. ● Output device: Monitor, Printer, Speakers; any piece of computer hardware equipment which converts information into human readable form. Central Processing Unit (CPU): a particular computer will have a particular type of processor ● Main memory: closely connected to the processor, stored data are quickly and easily changed, holds the programs and data that the processor is actively working with. ● Motherboard: components are connected to the main circuit board of the computer. ● Processor: contain billions of transistors; responsible for the fundamental computing within the system, and directly or indirectly controls all the other components. ● RAM (Random Access Memory): "Random" means that the memory cells can be accessed in any order and the type of silicon chip used to implement main memory. ● ROM (Read Only Memory): used to make a section of main memory read-only. Secondary memory: connected to main memory, stored data are easily changed, but changes are slow compared to main memory, and used for long-term storage of programs and data. 14 Application programs: programs that people use to get their work done. Embedded system: a computer system that is part of a larger machine and which controls how that machine operates. Network: consists of two or more computers connected so that they can exchange data and programs. Operating system: responsible for starting up application programs, running them, and managing the resources that they need. 5.03 KEY TERMS World wide web (WWW): a collection of websites or web pages stored in web servers and connected to local computers through the internet Search engines: a software program on the Internet that allows you to search documents and files for keywords and returns files that match Uniform resource locator (URL): used to identify it and link to a web page Viruses: a piece of code which is capable of copying itself and typically has a detrimental effect, such as corrupting the system or destroying data Browsers: software programs that allow you to view webpages, such as Internet Explorer, Safari, Firefox, or Google Chrome Keywords: ideas and topics that define what your content is about Emails Address book: store your contacts, which makes it easy to correspond and share contact information with others Attachments: files included with emails Distribution lists: help you email multiple people at once Software Word processor : enable users to enter and store written work into many types of documents Presentation Software: software used to create a sequence of text and graphics, and often audio and video, to accompany a speech or public presentation Spreadsheet: file made of rows Links to an external site.and columns Links to an external site.that help sort, organize, and arrange data efficiently, and calculate numerical Links to an external site.data ● Cells: a rectangular area formed by the intersection of a column and a row ● Columns: contain definitions of each field ● Formulas: an equation that makes calculations based on the data in your spreadsheet Database: designed to create databases and to store, manage, search, and extract the information contained within them ● Queries: requests for data 5.04 KEY TERMS Telecommuting: Working from home or a remote location Technology: The practical application of science to society and industry 15 ● Internet telephony: Technology that allows users to communicate over the Internet rather than through traditional public networks ● Voice over Internet Protocol (VoIP): Technology that allows users to make telephone calls over the Internet Network: A system of computers connected together by telephone wires, cable wires, or other means Database: Computerized storage for information and facts Expert system: Computer software designed to mimic the knowledge of a human expert Hardware: The physical components of a computer system (e.g., the central processing unit, hard drive, modem) Software: Programs that instruct computers to perform specific operations ● Computer-aided design (CAD): The use of computer technology to plan, design, test, and alter products ● Computer-aided manufacturing (CAM): The use of computer software to control machines, tools, and processes involved in manufacturing products Satellite Technology Global positioning system (GPS): A navigational system that uses satellite technology to determine location and provide directions Personal identification number (PIN): A number you choose to gain access to an account Satellite: An object placed into orbit by humans; most are used for communications purposes Smartphone: A mobile phone with advanced capabilities, such as accessing the Internet 6.01 KEY TERMS Accountability: the state of being accountable, liable, or answerable Ambition: desire for work or activity; energy Appearance: outward impressions, indications, or circumstances Attitude: manner, disposition, feeling, position, etc., with regards to a person or thing; tendency or orientation, especially of the mind Gratitude: the quality or feeling of being grateful or thankful Professionalism: professional character, spirit, or methods Human relationships are very important to your daily life. As an employee, each day is significantly influenced by your relationships with others on yo