MTTC Business, Management, Marketing, and Technology (098) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Accounting Equation

Assets equal liabilities plus owner's equity. Every business transaction changes at least two accounts while keeping this equation in balance, which is the basis of double-entry bookkeeping.

Gross Profit

Net sales minus cost of goods sold. It measures profit from selling goods before operating expenses such as rent, salaries, and advertising are deducted.

Break-Even Point

The sales volume at which total revenue equals total cost and profit is zero. In units it equals fixed costs divided by unit contribution margin.

Contribution Margin

Unit price minus unit variable cost. It shows how much each sale contributes toward covering fixed costs and then generating profit.

Current Ratio

Current assets divided by current liabilities. It gauges short-term liquidity, indicating whether a firm can pay obligations due within one year.

Marketing Mix

The controllable elements a firm blends to reach its target market: product, price, place, and promotion. Service marketing adds people, process, and physical evidence.

Market Segmentation

Dividing a broad market into subgroups sharing needs or traits. Common bases are demographic, geographic, psychographic, and behavioral characteristics.

Product Life Cycle

The progression of a product through introduction, growth, maturity, and decline. Marketing strategy and pricing typically change at each stage.

Price Skimming

Setting a high introductory price to capture buyers willing to pay a premium, then lowering it later. It suits innovative products with little early competition.

Penetration Pricing

Setting a low introductory price to win market share quickly and build volume. It works when demand is price-sensitive and scale economies exist.

SWOT Analysis

A planning tool sorting internal strengths and weaknesses against external opportunities and threats. It guides strategy by matching capabilities to environmental conditions.

SMART Goals

Objectives that are specific, measurable, achievable, relevant, and time-bound. This format makes goal progress verifiable and supports later performance control.

Price Elasticity of Demand

The percentage change in quantity demanded divided by the percentage change in price. If absolute value exceeds one, demand is elastic and a price cut raises revenue.

Promotion Mix

The combination of advertising, personal selling, sales promotion, public relations, and direct or digital marketing a firm uses to communicate with customers.

Distribution Intensity

The number of outlets used to sell a product. Intensive covers many outlets for convenience goods, selective uses some, exclusive uses one or few.

Management Functions

Planning, organizing, leading, and controlling. Controlling compares actual performance with standards and takes corrective action when results deviate.

Span of Control

The number of subordinates reporting to one manager. A narrow span creates a tall hierarchy with close supervision; a wide span creates a flatter structure.

Maslow's Hierarchy

Needs ranked from physiological, safety, social, and esteem to self-actualization. Lower-level needs generally must be satisfied before higher ones motivate behavior.

Herzberg Two-Factor Theory

Hygiene factors such as pay and working conditions prevent dissatisfaction but do not motivate. Motivators such as achievement, recognition, and growth produce satisfaction.

Theory X and Theory Y

McGregor's contrasting assumptions about workers. Theory X assumes people dislike work and need control; Theory Y assumes they seek responsibility and self-direction.

Autocratic Leadership

A style in which the leader makes decisions with little or no subordinate input. It can be efficient in crises but may reduce morale and initiative.

Democratic Leadership

A participative style in which the leader invites group input before deciding. It tends to raise commitment and morale but can slow decision-making.

Laissez-Faire Leadership

A hands-off style giving subordinates broad freedom to set their own methods and pace. It works best with skilled, self-motivated, experienced team members.

Situational Leadership

Matching leadership style to followers' readiness or maturity. Task behavior decreases and relationship behavior adjusts as followers gain competence and confidence.

Line vs Staff Authority

Line authority flows down the chain of command and directly achieves goals. Staff authority advises and supports line managers without commanding them.

Centralization vs Decentralization

Centralization concentrates decision authority at the top of the organization. Decentralization pushes decisions to lower levels, speeding response to local conditions.

Organizational Culture

Shared values, beliefs, and norms that shape how members behave. Culture is transmitted through stories, rituals, symbols, and leader example.

Human Resource Planning

Forecasting future labor needs and comparing them with the current workforce. Gaps are closed through recruiting, training, redeployment, or reduction.

Job Analysis

A systematic process producing a job description, which lists duties, and a job specification, which lists required knowledge, skills, and abilities.

Performance Appraisal

Formal evaluation of employee performance against standards. Methods include rating scales, critical incidents, behaviorally anchored scales, and 360-degree feedback.

Total Quality Management

A management approach emphasizing continuous improvement, customer focus, employee involvement, and fact-based decisions. Deming and Juran are key contributors.

Supply Chain Management

Coordinating the flow of materials, information, and funds from suppliers through production to final customers to reduce cost and improve delivery.