Business Terms Flashcards
An organization that uses productive resources to produce a good and/or a service to satisfy consumer needs and wants in exchange for added value, usually in the form of monetary(money) profit.
Business
Something that is tangible(is physical in nature) and of value.
- Ownership transferred to buyer
- Can be returned
- Gap between production and consumption
Good
An action performed that is intangible and of value.
- One party offers as a benefit to another
- Ownership can not be transferred
- Can not be returned
- Production and consumption happen at the same time
Service
A necessity for life, something one must have to survive in the short and/or long term.
Need
Something one would like to have as it has perceived value, but it is not needed for life to continue.
Want
The net gain obtained by subtracting expenses from revenues.
Profit
The total income(money) that the business receives through the sale of it’s product.
Revenue
The total cost a business pays to operate as a business.
Expenses
A business that may attempt to deliver a product or service to consumers in an attempt to gain a profit.
For-profit Business
A organization that provides a service or benefit to the community without making a profit.
Non-profit Business
The basic foundation of the study of economics, our wants are theoretically unlimited, but our resources to meet those wants are limited, or scarce.
Scarcity
Something that occurs anytime buyers and sellers willingly meet to negotiate and exchange things of value.
Market(Class Definition)
The wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.
Economy
The central authority determines who owns the means to produce goods and services, what to produce, how to produce it and for whom to receive these goods.
Socialized Economy
Who owns the means of production: Determined through the interaction of free markets.
What to produce: What ever can produce the most value in the economy
How to produce: In the most effective ways to generate maximum profit
For whom to produce: Whoever is willing to pay for the goods
Market Economy
The study of how we deal with scarcity in our worlds.
Economics
The quantity of goods and/or services that consumers are willing and able to buy at various prices.
Demand
The quantity of goods and/or services that producers are willing and able to sell at various prices.
Supply
The point at which a supply curve and a demand curve meet is called the…
Equilibrium
A business with one owner who gain all the benefits of the business and assumes all the risk.
Sole Proprietorship
A business owned and operated by two or more people.
Partnership
A sole owner is responsible for a business, making themselves and the business entity one and the same thing. Meaning if the business goes into debt the owner is in debt as well.
Unlimited Liability
A legal entity that is separate and distinct from it’s owners(called shareholders).
Corporation
If the corporation owes money, the shareholders are not personally liable for those losses.
Limited Liability
