Business
individuals or organizations who try to earn a profit by providing products that satisfy people's needs.
Product
a good or service with tangible and intangible characteristics that provide satisfaction and benefits.
Profit
the difference between what it costs to make and sell a product and what a customer pays for it
Non Profit Organizations
organizations that may provide goods or services but do not have the fundamental purpose of earning profits.
Stakeholders
groups that have a stake in the success and outcomes of a business.
Economics
the study of how resources are distributed for the productions of good and services within a social system.
Natural Resources
land, forests, minerals, water, and other things that are not made by people
Human Resources
the physical and mental abilities that people use to produce goods and services; also called labor
Financial Resources
the funds used to acquire the natural and human resources needed to provide products; also called capital
Economic System
a description of how a particular society distributes its resources to produce goods and services
Communism
first described by Karl Marx as a society in which the people, without regard to class, own all the nation's resources
Socialism
an economic system in which the government owns and operates basic industries but individuals own most businesses.
Capitalism
or free enterprise is an economic system in which individuals own and operate the majority of businesses that provide goods and services
Free Market System
pure capitalism, in which all economic decisions are made without government intervention.
Mixed Economics
Economies made up of elements from more than one economic system
Demand
the number of goods and services that consumers are willing to buy at different prices at a specific time.
Supply
the number of products-goods and services that businesses are willing to sell at different prices at a specific time.
Equilibrium Price
the price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.
Competition
the rivalry amoung businesses for consumers' dollars
Pure Competition
the market structure that exists when there are many small businesses selling one standardized product.
Monopolistic Competition
the market structure that exists when there are fewer businesses than in a pure-competition environment and the differences among the goods they sell are small.
Oligopoly
the market structure that exists when there are very few businesses selling a products
Monopoly
the market structure that exists when there is only one business providing a product in a given market.
Economic Expansion
the situation that occurs when an economy is growing and people are spending more money; their purchases stimulate the production of goods and services, which in turn stimulates employment
Inflation
A condition characterized by a continuing rise in prices
Economic Contraction
a slowdown of the economy characterized by a decline in spending and during which businesses cut back on production and lay off workers
Recession
a decline in production, employment, and income
Unemployment
the condition in which a percentage of the population wants to work but is unable to find jobs.
Depression
a condition of the economy in which unemployment is very high, consumer spending is low, and business output is sharply reduced.
Gross Domestic Product
GDP, the sum of all goods and servies produced in a country during a year
Budget Deficit
the condition in which a nation spends more than it takes in from taxes.
Entrepreneur
an individual who risks his or her wealth, time, and effort to develop for profit an innovative product or way of doing something.
Business Ethics
principles and standards that determine acceptable conduct in business.
Social Responsibility
a business' obligation to maximize its positive impact and minimize its negative impact on society.
Ethical Issue
an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical
Bribes
Payments, gifts, or special favors intended to influence the outcome of a decision.
Plagiarism
the act of taking someone else's work and presenting it as your own without mentioning the source.
Code of Ethics
formalized rules and standards that describe what a company expects of its employees.
Whistleblowing
the act of an employee exposing an employer's wrongdoing to outsiders, such as the media or government regulatory agencies.
Corporate Citizenship
the extent to which businesses meet the legal, ethical, economic, and voluntary responsbilities placed on them by their stakeholders.
Consumerism
the activities that independent individuals groups and organizations undertake to protect their rights as consumers.
International Business
the buying, selling, and trading of goods and services across national boundaries
Absolute Advantage
a monopoly that exits when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item.
Comparative Advantage
the basis of most international trade, when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items.
Outsourcing
the transferring of manufacturing or other tasks, such as data processing, to countries where labor and supplies are less expensive.
Exporting
the sale of goods and services to foreign markets
Importing
the purchase of goods and servies from foreign sources
balance of trade
the difference in value between a nation's exports and its imports
trade deficit
a nation's negative balance of trade, which exists when that country imports more products than it exports.
Infrastructure
the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commerical distribution systems.
Exchange rate
the ratio at which one nation's currency can be exchanged for another nation's currency.
Import Tariff
a tax levied by a nation on goods imported into a country.
Exchange Controls
regulations that restrict the amount of currency that can be bought or sold
Quota
a restriction on the number of units of a particular product that can be imported into a country.
Embargo
a prohibition on trade in a particular product.
Dumping
the act of a country or business selling products at less than what it costs to produce them.
Cartel
a group of firms or nations that agree to act as a monopoly and not compete with each other, in order to generate competitive advantage in world markets.
General Agreement on Tariffs and Trade
(GATT) a trade agreement originally signed by 23 nations in 1947, that provided a forum for tariff negotiations and a place where international trade problems could be discussed and resolved.
World Trade Organization
(WTO) international organization dealing with the rules of trade between nations
North American Free Trade Agreement
(NAFTA) agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, the US, and Mexico.
European Union
(EU) a union of European nations est. in 1958 to promote trade among its members; one of the largest single markets today.
Asia-Pacific Economic Cooperation
(APEC) an international trade alliance that promotes open trade and economic and technical cooperation among member nations.
World Bank
an organization est. by the industrialized nations in 1946 to loan money to underdeveloped and developing countries; formally known as the International Bank for Reconstruction and Development.
International Monetary Fund
(IMF) organization est. in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation.
Countertrade agreements
foreign trade agreements that involve bartering products for other products instead of for currency.
trading company
a firm that buys goods in one country and sells them to buyers in another country.
licensing
a trade agreement in which one company-the licensor-allow another company-the licensee-to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty.
franchising
a form of licensing in which a company-the franchiser-agrees to provide a franchisee a name, logo, methods of operation, advertising, products, and other elements associated with a franchiser's business in return for a financial commitment and the agreemtn to conduct business in accordance with the franchiser's standard of operation.
contract manufacturing
the hiring of a foreign company to product a specified volume of the initiating company's product to specification; the final product carries the domestic firm's name.
joint venture
the sharing of the costs of operation of a business between a foreign company and a local partner.
strategic alliance
a partnership formed to create competitive advantage on a worldwide basis
direct investment
the owernship of overseas facilities
Multinational corporation
(MNC) a corporation that operates on a worldwide scale, without significant ties to any one nation or region
Multinational strategy
a plan, used by international companies, that involves customizing products, promotion, and distribution according to cultural, technological, regional, and national differences.
Global Strategy
a strategy that involves standardizing products for the whole world, as if it were a single entity.
Sole proprietorships
businesses owned and operated by one individual; the most common form of business organization within the US.
Partnership
a form of business organization defined by the Uniform Partnership Act as "an association of two or more persons who carry on as co-owners of a business for profit.
General Partnership
a partnership that involves a complete sharing in both the management and the liability of the business
Limited Partnership
a business organization that has at least one general partner, who assumes unlimited liability, and at least one limited partner, whose liability is limited to his or her investment in the business.
Articles of Partnership
legal documents that set forth the basic agreement between partners
Corporation
a legal entity, created by the state, whose assets and liabilities are separate from its owners
Stock
shares of a corp. that may be bought or sold.
Dividends
profits of a corp. that are distributed in the form of cash payments to stockholders
Corporate Charter
a legal document that the state issues to a company based on information the company provides in the articles of incorporation
Private Corporation
a corporation owned by just one or a few people who are closely involved in managing the business
Public Corporation
a corp. whose stock anyone may buy, sell, or trade
Initial Public Offering
(IPO) Selling a corp. stock on public markets for the first time.
Quasi public corporations
corp. owned and operated by the federal, state, or local gov.
Non profit organization
corp. that focus on providing a service rather than earning a profit but are not owned by a gov. entity.
board of directors
a group of individuals, elected by the stockholders to oversee the general operation of the corp., who set the corp. long-range objectives.
preferred stock
a special types of stock whose owners, though no generally having a say in running the co. have a claim to profits before other stockholders do
common stock
stock whose owners having voting rights in the corp. yet do not receive preferential treatments reg. dividends.
joint venture
a partnership est. for a specific project or for a limited time.
S Corporation
corporation taxed as though it were a partnership with restrictions on shareholders.
Limited Liability Company
(LLC) form of ownership that provides limited liability and taxation like a partnershp but places fewer retrictions on members
Cooperative
(Co-op) an organization composed of individuals or small businesses that have banded together to reap the benefits of belonging to a larger organization.
Merger
the combination of two companies (usually corp.) to form a new company.
acquisition
the purchse of one company by another, usually by buying its stock.
leveraged buyout
(LBO) a purchase in which a group of investors borrows money from banks and other institutions to acquire a company using the assets of the purchase company to guarantee repayment of the loan.
enterpreneurship
the process of creating and managing a business to achieve desired objectives.
small business
any independently owned and operated business that is not dominant in its competitive area and does not eomploy more than 500 people.
small business administration
(SBA) an independent agency of the fed. gov. that offers managerial and financial assistance to small businesses.
undercapitalization
the lack of funds to operate a business normally
business plan
a precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals
venture capitalists
persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock.
franchise
a license to sell another's products or to use another's name in business or both
franchiser
the company that sells a franchise
franchisee
the purchaser of a franchise
intrapreneurs
individuals in large firms who take responsibility for the development of innovations within the organization
management
a process designed to achieve an organizations objectives by using its resources effectively and efficiently in a changing environment
managers
those individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, staffing, directing, and controlling the organization's activities to reach its objectives.
planning
the process of determining the organization's objectives and deciding how to accomplish them, the first function of management.
mission
the statement of an organization's fundamental purpose and basic philosophy
strategic plans
those plans that est. the long-range objectives and overal strategy or course of action by which a firm fulfills a mission
tractical plans
short-range plans designed to implement the activities and objectives specified in the strategic plan.
operational plans
very short-term plans that specify what actions individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plan.
Contingency planning
an element in planning that deals with potential disasters such as product tampering, oil spills, fire, earthquakes, computer virus, or airplane crash.
organizing
the structuring of resources and activities to accomplish objectives in an efficient and effective manner.
staffing
the hiring of people to carry out the work of the organization
downsizing
the elimination of a significant number of employees from an organization
directing
motiving and leading employees to achieve organizational objectives
controlling
the process of evaluating and correcting activities to keep the organization on course
top managers
the president and other top executies of a business such as the CEO, CFO, and COO who have overall responsibility for the organization.
middle managers
those members of an organization responsible for the tactical planning that implements the general guidelines est. by top management
first line managers
those who supervise both workers and the daily operations of an organization
financial managers
those who focus on obtaining the needed funds for the successful operation of an organization and using those funds to further organizational goals
production and operations managers
those who develop and adminster the activities involved in transforming resources into goods, services, and ideas ready for the marketplace.
human resource managers
those who handle the staffing function and deal with employees in a formalized mannner
marketing managers
those who are responsible for planning, pricing, and promoting products and make them available to customers.
information technology managers
those who are responsible for implementing, maintaining, and controlling technology applications in business such as computer networks.
administrative managers
those who manage an entire business or a major segment of a business; they are not specialists but coordinate the activities of specialized managers
leadership
the ability to influence employees to work toward organizational goals
technical expertise
the specialized knowledge and training needed to perform jobs that are related to particular areas of management
conceptual skills
the ability to think in abstract terms and to see how parts fit together to form the whole.
analytical skills
the ability to identify relevant issues, recognize their importance, understand the relationships between them and perceive the underlying causes of a situation.
human relations skills
the ability to deal with people both inside and outside the organization.
agenda
a calendar, containing both specific and vague items that covers short-term goals and long-range objectives
networking
the building of relationships and sharing of information with colleagues who can help managers achieve the items on their agendas.
human relations
the study of the behavior of individuals and groups in organizational settings
motivation
an inner drive that directs a person's behavior toward goals.
morale
an employee's attitude toward his/her job, employer, and colleagues
intrinsic rewards
the personal satisfaction and enjoyment feel after attaining a goal
extrinsic rewards
benefits and/or recognition received from someone else
classical theory of motivation
theory suggesting that money is the sole motivator for workers.
maslow's hierarchy
a theory that arranges the five basic needs of people - physiological, security, social, esteem, and self-actualization-into the order in which peole strive to satisfy them.
physiological needs
the most basic human needs to be satisfied-water, food, shelter, and clothing
security needs
the need to protect oneself from physical and economic harm
social needs
the need for love, companionship, and friendship-the desire for acceptance by others
esteem needs
the need for respect-both self-respect and respect from others
self actualization needs
the need to be the best one can be; at the top of Maslow's hierarchy
hygiene factors
aspects of Herzberg's theory of motivation that focus on the work setting and not the content of the work; these aspects included adequate wages, comfortable, and safe working conditions, fair company policies, and job security
motivational factors
aspects of Herzberg's theory of motivation that focus on the contect of the work itself; these aspects include achievement, recognition, involvement, responsibility, and advancement
theory x
McGregor's traditional view of management whereby it is assumed that workers generally dislike work and must be forced to do their jobs
theory y
McGregor's humanistic view of management whereby it is assumed that workers like to work and that under proper conditions employees will seek out responsibility in an attempt to satisfy their social, esteem, and self-actualization needs.
theory z
a management philosophy that stresses employee participation in all aspects of company decision making
equity theory
an assumption that how much people are willing to contribute to an organization depends on their assessment of their fairness, or equity, of the rewards they will receive in exchange
expectancy theory
the assumption that motivation depends NOT only on how much a person wants something but also on how likely he or she is to get it
behavior modification
chaning behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself
job rotation
movement of employees from one job to another in an effort to relieve the boredom often associated with job specialization
job enlargement
the addition of more tasks to a job instead of treating each task as separate
job enrichment
the incorporation of motivational factors, such as opportunity for achievement, recognition, responsibility, and advancement into a job
flextime
a program that allows employees to choose their starting and ending times, provided that they are at work during a specified core period
compressed workweek
a four-day period during which an employee works 40 hours
job sharing
performance of one full-time job by two people on part-time hours.
marketing
a group of activities designed to expedite transactions by creating, distributing, pricing and promoting goods, services, and ideas
exchange
the act of giving up one thing in return for something else
marketing concept
the idea that an organization should try to satisfy the customers' needs through coordinated activities that also allow it to achieve its own goals
marketing orientation
an approach requiring org. to gather info. about customer needs, share that info. throughout the firm, and use that info. to help build long-term relationships with customers
marketing strategy
a plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers
market
a group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas
target market
a specific group of consumers on whose needs and wants a company focuses its marketing efforts
total market approach
an approach whereby a firm tries to appeal to everyone and assumes that all buyers have similar needs
market segmentation
a strategy whereby a firm divides the total market into groups of people who have relatively similar product needs
market segment
a collection of individuals, groups, or organizations who share one or more characteristics and thus have relatively similar product needs and desires
concentration approach
a market segmentation approach whereby a company develops one marketing strategy for a single market segment
multisegment approach
a market segmentation approach whereby the marketer aims its efforts at two or more segments, developing a marketing strategy for each
marketing mix
the four marketing activities - product, price, promotion, and distribution-that the firm can control to achieve specific goals within a dynamic marketing environment
price
a value placed on an object exchanged between a buyer and a seller
distribution
making products available to customers in the quantities desired
promotion
a persuasive form of communication that attempts to expedite a marketing exhanged by influencing individuals, groups, and organizations to accept goods, services, and ideas
marketing research
a systematic, objective process of getting info. about potential customers to guide marketing decisions.
primary data
marketing infomration that is observed, recorded, or collected directly from respondents.
secondary data
information that is compiled inside or outside or organization for some purpose other than changing the current situation.
buying behavior
the decision processes and actions of people who purchase and use products
perception
the process by which a person selects, organizes, and interprets information received from his/her senses.
motivation
inner drive that directs a person's behavior toward goals
learning
changes in a person's behavior based on information and experience
attitude
knowledge and positive or negative feelings about something
personality
the organization of an individual's distinguishing character traits, attitudes, or habits
social roles
a set of expectations for individuals based on some position they occupy
reference groups
groups with whom buyers identify and whose values or attitudes they adopt.
social classes
a ranking of people into higher or lower positions of respect
culture
the integrated accepted pattern of human behavior, including thought, speech, beliefs, actions, and artifacts
test marketing
a trial minilaunch of a product in limited areas that represent the potential market
commercialization
the full introduction of a complete marketing strategy and the launch of the product for commercial success.
consumer products
products intended for household or family use
business products
products that are used directly or indirectly in the operation or manufacturing processes of businesses
product line
a group of closely related products that are treated as a unit because of similar marketing strategy, production, or end-use considerations
product mix
all the products offered by an organization
branding
the process of naming and identifying products
trademark
a brand that is registered with the US Patent and Trademark Office and is thus legally protected from use by any other firm
manufactured brands
brands initiated and owned by the manufacturer to identify products from the point of production to the point of purchase
private distributor brands
brands, which may cost less than manufacturer brands, that are owned and controlled by the wholesaler/retailer.
generic products
products with no brand name that often come in simple packages and carry only their generic name
packaging
the external container that holds and describes the product
labeling
the presentation of important information on a package
quality
the degree to which a good, service, or idea meets the demands and requirements of customers
price skimming
charging the highest possible price that buyers who want the product will pay
penetration price
a low price designed to help a product enter the market and gain market share rapidly
psychological pricing
encouraging purchases based on emotional rather than rational responses to the price
discounts
temporary price reductions, often employed to boost sales
marketing channel
a group of organizations that moves products from their producer to customers; also called a channel of distribution.
retailers
intermediaries who buy products from manufacturers and sell them to consumers fro home and household use rather than for resale or for use in producing other products
wholesalers
intermediaries who buy from producers or from other wholesalers and sell to retailers
intensive distribution
a form of market coverage whereby a product is made available in as many outlets as possible
selective distribution
a form of market coverage whereby only a small number of all available outlets are used to expose products
exclusive distribution
the awarding by a manufacturer to an intermediary of the sole right to sell a product in a defined geographic territory.
physical distribution
all the activities necessary to move products from producers to customers -inventory control, transportation, warehousing, and materials handling
transportation
the shipment of products to buyers
warehousing
the design and operation of facilities to receive, store, and ship products
materials handling
the physical handling and movement of products in warehousing and transportation
integrated marketing communications
coordinating the promotion mix elements and synchronizing promotion as a unified effort
advertising
a paid form of nonpersonal communication transmitted through a mass medium, such as television, commercials, or magazine advertisements
advertising campaign
designing a series of advertisements and placing them in various media to reach a particular target market
personal selling
direct two-way communication with buyers and potential buyers.
publicity
nonpersonal communication transmitted through the mass media but not paid for directly by the firm.
sales promotion
direct inducements offering added value or some other incentive for buyers to enter into an exchange
push strategy
an attempt to motivate intermediaries to push the product down to their customers
pull strategy
the use of promotion to create consumer demand for a product so that consumers exert pressure on marketing channel members to make it available
promotional positioning
the use of promotion to create and maintain an image of a product in a buyer's mind.
accounting
the recording, measurement, and interpretation of financial information
certified public accountant
(CPA) an individual who has been state certified to provide accounting services ranging from the preparation of financial records and the filing of tax returns to complex audits of corporate financial records
private accountant
accountants employed by large corporations, gov. agencies, and other organizations to prepare and analyze their financial statements
certified management accountants
(CMA) private accountants who, after rigorous examination, are certified by the National Association of Accountants and who have some managerial responsibility.
managerial accounting
the internal use of accounting statements by managers in planning and directing the organization's activities
cash flow
the movement of money through an organization over a daily, weekly, monthly, or yearly basis
budget
an internal financial plan that forecasts expenses and income over a set period of time
annual report
summary of a firm's financial information, products, and growth, plans for owners and potential investors
assets
a firm's economic resources, or items of value that it owns, such as cash, inventory, land, equipment, buildings, and other tangible and intangible things
liabilities
debts that a firm owes to others
owner's equity
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accounting equation
assets=liabilities+owner's equity
double entry bookkeeping
a system of recording and classifying business transactions that maintains the balance of the accouting equation
accounting cycle
the four step procedure of an accounting system: examining source documents, recording transactions in an accouting journal, posting recorded transactions, and preparing financial statements.
journal
a time-ordered list of account transactions
ledger
a book or computer file with separate sections of each account
income statement
a financial report that shows an organization's profitability over a period of time-month, quarter, or year
revenue
the total amount of money received from the sale of goos or services, as well as from related business activities
cost of goods sold
the amount of money a firm spend to buy or produce the products it sold during the period in which the income statement applies.
Gross income
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expenses
the costs incurred in the day-to-day operations of an organization
depreciation
the process of spreading the costs of long-lived assets such as buildings and equipment over the total number of accounting periods in which they are expected to be used.
net income
the total profit after all expenses, including taxes, have been deducted from revenue; also called net earning
balance sheet
a snapshot of an organization's financial position at a given moment.
current assets
assets that are used or converted into cash within the course of a calendar year
accounts receivable
money owed a company by its clients or customers who have promised to pay for the products at a later date.
current liabilities
a firm's financial obligations to short-term creditors, which must be repaid within one year
accounts payable
the amount a company owes to suppliers for goods and services purchased with credit
accrued expenses
is an account representing all unpaid financial obligations incurred by the organization
statement of cash flows
explains how the company's cash changed from the beginning of the accounting period to the end.
finance
the study of money; how its made, how its lost, and how its managed
money
anything generally accepted in exchange for goods and services
checking account
money stored in an account at a bank or other financial institution that can be withdrawn without advance notice; also called a demand deposit
savings accounts
accounts with funds that usually cannot be withdrawn without advance notice; also known as time deposits
money market accounts
accounts that offer higher interest rates than standard bank rates but with greater restrictions
certificates of deposit
savings accounts that guarantee a depositor a set interest rate over a specified interval as long as the funds are not withdrawn before the end of the period - six months or one year
credit cards
means of access to preapproved lines of credit granted by a bank or finance company
debit card
a card that looks like a credit card but works like a check; using it results in a direct, immediate, electronic payment from the cardholder's checking account to a merchant or third party.
Federal Reserve Board
an independent agency of the federal government est. in 1913 to regulate the nation's banking and financial industry.
monetary policy
means by which the Fed controls the amount of money available in the economy.
open market operations
decisions to buy or sell US T-Bills by the US gov. and other investments in the open market.
reserve requirement
the percentage of deposits that banking institutions must hold on reserve
discount rate
the rate of interest the Fed charges to loan moany to any banking institution to meet reserve requirements
credit controls
the authority to establish and enforce credit rules for financial institutions and some private investors.
commercial banks
the largest and oldest of all financial institutions, relying mainly on checking and savings accounts as sources of funds for loans to businesses and individuals
savings and loan associations
(S&L) financial institutions that primarily offer savings accounts and make long-term loans for residential mortgages; also called "thrifts
credit union
a financial instituion owned and controlled by its depositors, who usually have a common employer, profession, trade group, or religion
mutual savings bank
financial institutions that are similar to savings and loan associations but like credit unions are owned by their depositors
federal deposit insurance corp
an insurance fund est. in 1933 that insures individual bank accounts
national credit union association
an agency that regulates and charters credit unions and insures their deposits through its National Credit Union Insurance Fund
insurance companies
businesses that protect their clients against financial losses from certain specified risks (death, accident, theft, etc.)
pension funds
managed investment pools set aside by individuals, corporations, unions, and some nonprofit organizations to provide retirement income for members
mutual funds
an investment company that pools individual investor dollars and invests them in large number of well-diversified securities
brokerage firms
firms that buy and sell stocks, bonds, and other securities for their customers and provide other financial services.
investment banker
underwrites new issues of securities for corporations, states, and municipalities
finance companies
businesses that offer short-term loans at substantially higher rates of interest than banks
electronic funds transfer
(EFT) any movement of funds by means of an electronic terminal, telephone, computer, or magnetic tape.
automated teller machine
(ATM) the most familiar form of electronic banking, which dispenses cash, accepts deposits, and allows balance inquiries and cash transfers from one account to another.
automated clearinghouse
(ACH) a system that permits payments such as deposits or withdrawals to be made to and from a bank account by magnetic computer tape