Business And Society Flashcards
Raw-goods producers
Provide goods in their natural or raw states
Manufactures
Change the shapes or forms of materials so that they will be useful to consumers
Builders
Build stuff
Trade industries
Businesses that buy and sell goods to others
E-Trailers
Retailers that operate exclusively online
Service businesses
Perform intangible activities that satisfy the needs and wants of consumers and industrial users
Economic responsibility
A business is responsible for making money and for contributing to the national and local economies
A products life cycle
The stages it moves through from the time it is introduced to the market until the time it is taken off the market
Economic system
Organization way in which a country handles it economic decisions and solves it economic problems
Medium of exchange
Something of value that can be used to obtain goods and services
Traditional economic system
Based on traditions passed down through generations
Subsistence
A level of existence that barely supports life
Command economic system
The government owns and operates many or all of the means of production. There is no competition.
Communist command economy
Government controls and owns practically all the means of production and distribution
Central planning
Economic planning
Quota
A fixed share of something that a person or group is entitled to receive or is bound to contribute
Socialist command economy
Government owns some basic means of production, but there is private ownership of business as well
Socialist countries are often called what
Welfare states because their governments have programs to provide citizens with free medical care, education, financial assistance, and other benefits
Market economic system
Individuals and businesses own the means of production and distribution. Prices are controlled by supply and demand
Private enterprise economic system
Individuals and groups own or control the economic resources (market economy)
Formula to calculate profit
Income-Expense=Profit
Private sector
Part of the economy that is owned and controlled by individuals or businesses
High-context cultures
Cultures who rely heavily on nonverbal communication to get messages across
Low-context cultures
Cultures who rely more on verbal communication
