Vocabulary Handout – Business Characteristics

Manufacturers take raw materials or processed goods and transform them into finished products. These products are then distributed to retailers or customers. They play a key role in the supply chain by producing goods for market consumption. Unlike processors or producers, manufacturers finalize the product.

The Human Resources (HR) department handles staffing, onboarding, employee training, and professional development. HR ensures the organization recruits and retains qualified personnel. It also manages benefits, compliance, and workplace culture. Their goal is to support employee success and organizational efficiency.

The Hierarchy of Needs, proposed by psychologist Abraham Maslow, outlines levels of human motivation. It begins with basic needs like food and safety and progresses to self-actualization. This model helps businesses understand employee and customer behavior. It's widely used in management, marketing, and psychology.

A Balance Sheet provides a snapshot of a company's financial position at a specific point in time. It shows assets (what the company owns), liabilities (what it owes), and equity (owner’s value). This report helps assess financial health and solvency. It's a critical tool for investors and managers.

The Product Life Cycle describes the four main stages of a product: introduction, growth, maturity, and decline. Each stage requires different marketing strategies and decisions. Understanding this cycle helps businesses plan for product development and withdrawal. It helps optimize profit and extend the product’s life.

The Marketing department researches customer preferences and develops products to satisfy them. It focuses on the 4 Ps: product, price, place, and promotion. Marketing ensures the business remains customer-focused and competitive. Its insights drive both product design and strategy.

Accounting involves the systematic tracking of a company’s financial transactions. It helps summarize financial data into reports like income statements and balance sheets. These reports guide decision-making and ensure compliance. Accounting is essential for transparency and fiscal management.

The Finance department oversees budgeting, investing, and funding decisions. It ensures the organization uses its resources efficiently and prepares for future financial needs. Finance creates short- and long-term financial plans. Its role supports growth, sustainability, and profitability.

Assets are resources a business owns that provide economic value. Examples include cash, inventory, equipment, and property. They appear on the balance sheet and are used to generate revenue. Assets represent what a company can use or convert into value.

Intermediaries act as middlemen in the distribution process. They don’t produce goods but help get them from manufacturers to consumers. These businesses include wholesalers, distributors, and retailers. Their role is essential in maintaining supply chain efficiency.