Business of A&C: Basic Principles of Business Flashcards
Business
An organization or entity engaged in the production, sale, or exchange of goods and services with the goal of making a profit.
Entrepreneur
An individual who starts and operates a business, taking on financial risks in the hope of making a profit.
Market
The place or platform where buyers and sellers interact to exchange goods, services, or information.
Supply and Demand
The economic concept that describes how the availability of a product or service (supply) and the desire for that product or service (demand) influence its price.
Profit
The positive financial gain a business makes after deducting all expenses from its revenue.
Revenue
The total income generated from sales of goods, services, or other sources
Expenses
The costs incurred in running a business, including overhead, salaries, materials, and other operational costs
Business Plan
A detailed document outlining the goals, strategies, and operational plans of a business, often created for attracting investors or guiding business growth
Marketing
The process of promoting and selling products or services, including activities like advertising, market research, and branding
Supply Chain
The network of organizations, people, activities, information, and resources involved in producing and distributing goods and services to customers
E-Commerce
The buying and selling of goods and services over the internet, encompassing activities such as online shopping and electronic payments
Branding
The creation of a unique image, name, or symbol that identifies and distinguishes a product, service, or company from others in the market
Human Resources
The department responsible for managing employee-related matters, including recruitment, training, benefits, and performance evaluations
Financial Statements
Reports that provide an overview of a business’s financial performance, including the balance sheet, income statement, and cash flow statement
Budget
A detailed financial plan that outlines expected income and expenses over a specific period, often used as a guideline for managing finances
Market Segmentation
The process of dividing a market into distinct groups based on characteristics such as demographics, psychographics, and behavior, to target specific consumer segments effectively
Pricing Strategy
The approach a business takes to determine the price of its products or services, often influenced by factors like cost, competition, and perceived value
Business Ethics
The principles and values that guide the behavior and decision-making of a business, ensuring honesty, integrity, and social responsibility
Networking
Building and maintaining relationships with other professionals, clients, customers, and industry contacts to gather information, exchange ideas, and foster business opportunities
Intellectual Property
Legal rights that protect creations of the mind, such as inventions, literary and artistic works, symbols, names, and designs used in commerce
Diversification
Spreading investments, products, or services across different industries, markets, or assets to reduce risk and achieve a more balanced portfolio
