Key Business & Economic Terms: A Concise Reference
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Key Business & Economic Terms
COMPANY: An economic unit that is used to produce goods and services.
ECONOMIC ACTIVITY: This is part of human activity that has to do with allocating scarce assets to fulfill unlimited wants.
CORPORATE SOCIAL RESPONSIBILITY: It is a responsibility firms voluntarily assume that goes beyond what the law requires.
MULTINATIONAL: A large company headquartered in one country with branches in other countries.
GLOBALIZATION: The extension of economic, cultural, and social processes across the world.
DECOLONIZATION: Consists of a transfer of economic activity from one company to another country for advantages that benefit the company.
An economic good: It is scarce, limited, and requires payment.
INDUSTRIAL PROPERTY: A property right referring to an invention, new product, or manufacturing process.
MERCANTILE LAW: A set of rules that regulate economic activity.
PUBLIC REVENUE: Money collected by public administrations to fund public spending.
SOCIAL COSTS: Costs a company incurs when its operations infringe on society or the environment.
ACCOUNTING STANDARDS: Rules within the legislation governing commercial aspects related to the recording and accounting entries of a company.
TAX: A tax required by the state from citizens or companies for a specific activity.
RATE: The quantity of money paid to a public entity in exchange for a public service.
S. COOPERATIVA: An independent legal entity distinguished by partners seeking to meet a common need on a non-profit basis.
S. LABOR: An independent legal entity where 51% of the capital must be contributed by worker partners with permanent contracts.
S. ANONYMOUS: An independent legal entity with a minimum capital of €60,101.21, divided into shares that are easily transmitted.
S. LLCs: An independent legal establishment with one or more partners whose minimum capital is €3,005, divided into participations that cannot be freely passed on.
S. TRADE: Any type of company that has a particular legal form with the goal of producing profit.
FORMAL ORGANIZATION: An intentional form of organization.
INFORMAL ORGANIZATION: A form of organization resulting from spontaneous personal relationships between individual workers.
ORGANIZATION: A graphical representation of the organizational structure of a company.
LINEAL ORGANIZATIONAL STRUCTURE: An organizational structure distinguished by a clear command unit when defining organizational aims.
ORGANIZATIONAL STRUCTURE OF STAFF: An organizational structure where each charge giving orders has a staff person or group advising them.
CREATING VALUE IN BUSINESS: Any firm that produces added value.
MERCANTILE REGISTRY: An institution under the Ministry of Justice that collects or records the most relevant events of a company.