Business Characteristics Vocabulary

Question 1

Materials derived from natural resources.

Answer 1

Raw goods

Question 2

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

Answer 2

Processors

Question 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”

Answer 3

Manufactures

Question 4

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

Answer 4

Non profit organization

Question 5

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

Answer 5

Marketing mix

Question 6

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

Answer 6

Maslow’s hierarchy of needs

Question 7

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

Answer 7

Balance sheet

Question 8

Process of effectively working together in group settings

Answer 8

Cooperations

Question 9

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

Answer 9

Accounting

Question 10

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

Answer 10

Assets

Question 11

Assets = Liabilities + Owner’s Equity

Answer 11

Accounting equations

Question 12

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

Answer 12

Income statement

Question 13

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

Answer 13

Finance

Question 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

Answer 14

Marketing

Question 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

Answer 15

Production life cycle

Question 16

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

Answer 16

Production

Question 17

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

Answer 17

Management

Question 18

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

Answer 18

Distribution

Question 19

Businesses which develop products for distribution from raw goods

Answer 19

Producer

Question 20

Businesses which provide services to consumers and other businesses

Answer 20

Service firms

Question 21

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

Answer 21

Human resources