Term Review

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