Flashcards: Understanding Economic Institutions — 22 cards

Economic institution — definition?

Organized unit producing and selling goods/services.

Institution characteristics — role?

Coordinates resources to achieve economic goals.

Classification — ownership?

Public, private, or mixed ownership.

Classification — sector?

Economic activity or social service sectors.

Institution objectives — main goal?

Economic growth, profitability, survival, development.

Churchill Lewis model — purpose?

Describes organization growth stages.

Growth stages — key concept?

Different management needs at each stage.

Inventory storage — purpose?

Protect goods and ensure accessibility.

Item coding system — function?

Uniquely labels inventory items.

Stock control — mechanism?

Monitors levels to prevent shortages/overstock.

Sources of financing — types?

Internal (self) and external sources.

Investment criteria — focus?

Return, risk, liquidity, and strategic fit.

Production management — objectives?

Efficient resource use and goal achievement.

Main functions — components?

Planning, organizing, controlling production.

Research & development — process stages?

Idea, project, analysis, model, testing, production.

Institution environment — components?

Economic, political, social, technological, legal.

Constraints — examples?

Financial, human resources, technological limits.

Effects on society — examples?

Job creation, wage effects, consumption habits.

Effects on environment — influence?

Resource use, pollution, sustainability.

Ownership vs sector — difference?

Ownership relates to control; sector relates to activity.

Growth stages — significance?

Guide management and strategic decisions.

Inventory control — goal?

Maintain optimal stock levels.