Business Characteristics Vocab

Question 1

Raw Goods

Answer 1

Materials derived from natural resources

Question 2

Processors

Answer 2

Businesses which change raw goods into a more finished form, known as processed goods

Question 3

Human Resources

Answer 3

Department responsible for maintaining the employment process, training and developing staff, and following laws and proper procedures

Question 4

Non-Profit Organizations

Answer 4

Businesses which provide goods and services to businesses and individuals, but operate on donations, volunteers and philanthropists rather than profit

Question 5

Service Firms

Answer 5

Businesses which provide services to consumers and other businesses

Question 6

Intermediaries

Answer 6

Businesses which move finished goods from one business to another by buying, storing and reselling goods; often referred to as “middle men”

Question 7

Producer

Answer 7

Businesses which develop products for distribution from raw goods

Question 8

Intermediaries

Answer 8

Businesses which move finished goods from one business to another by buying, storing and reselling goods; often referred to as “middle men”

Question 9

Cooperation

Answer 9

Process of effectively working together in a group setting

Question 10

Manufacturers

Answer 10

Businesses which change raw or processed goods into finished goods

Question 11

Maslow’s Hierarchy of needs

Answer 11

pyramid expressing the needs of people in levels: basic needs, safety, belongingness, love, esteem and self-actualization

Question 12

Income statement

Answer 12

financial statement which reports net income or net loss of a company

Question 13

Finance

Answer 13

department responsible for managing the use of company funds, obtaining needed funds and creating a financial plan

Question 14

Marketing

Answer 14

department responsible for creating products which meet consumer wants and needs, guiding products through the product life cycle and understanding consumers through marketing research

Question 15

Product life cycle

Answer 15

marketing theory stating the stages experienced by products and services from their introduction to their decline; consists of four stages: introduction, growth, maturity, decline

Question 16

Production

Answer 16

department responsible for producing goods and services in the most efficient and cost-effective manner

Question 17

Management

Answer 17

process of reaching a company’s goals and objectives by utilizing its resources; department responsible for the management process

Question 18

Distribution

Answer 18

department responsible for distributing goods and services in the most efficient and cost-effective manner

Question 19

accounting equation

Answer 19

Assets = Liabilities + Owner’s Equity

Question 20

Assets

Answer 20

items of value owned by a business Liabilities- debts or obligations of a business

Question 21

accounting

Answer 21

process of recording, classifying, summarizing and reporting the financial position of a business

Question 22

balance sheet

Answer 22

financial statement which reports totals in asset, liability and owner’s equity accounts

Question 23

marketing mix

Answer 23

four interrelated marketing strategies used to meet consumer needs; consist of product, price, promotion and place