Business Characteristics Vocabulary

Question 1

Raw Goods

Answer 1

materials derived from natural resources

Question 2

Processor

Answer 2

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

Question 3

Producers

Answer 3

businesses which change raw or processed goods into finished goods Intermediaries businesses which move finished goods from one business to another by buying, storing and reselling goods; often referred to as “middlemen”

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

Marketing Mix

Answer 5

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

Question 6

Maslow’s Hierarchy of Needs

Answer 6

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

Question 7

Balance Sheet

Answer 7

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

Question 8

Cooperation

Answer 8

process of effectively working together in group settings

Question 9

Accounting

Answer 9

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

Question 10

Assets

Answer 10

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

Question 11

Accounting Equation

Answer 11

Assets = Liabilities + Owner’s Equity

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

Manufacturers

Answer 19

businesses which develop products for distribution from raw goods

Question 20

Service Firms

Answer 20

businesses which provide services to consumers and other businesses

Question 21

Human Resources

Answer 21

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