Chapter 1 Flashcards
What is Business?
refers to the aspect of making, selling, and providing products in exchange for money.
Business Ethics
refers to the moral and social responsibilities of businesses to demonstrate ethical behavior in their policies and decision making.
Economics
the science of how individuals, businesses, and governments make decisions about satisfying unlimited wants with limited resources.
Economic Resource
are the goods and services businesses use to meet consumers’ wants and needs.
Land, Capital, Labor, Entrepreneurship
Economic Activity
refers to the production, distribution, and consumption of goods and services.
Entrepreneur
a person who risks and organizes its business.
Goods
refers to tangible items that are produced and sold to consumers.
Liability
Something that you are responsible for.
Market
places where goods and services are exchanged.
Product
anything that can be bought or sold.
Profit
the financial gain calculated by the difference between the amount earned and the amount spent by a business.
Service
an intangible activity that a person performs for a fee.
Standard of Living
the level of wealth, material goods, and necessities that are considered to be essential to an individual or group in a particular society.
Tax
mandatory payments to the local, state, and national governments for public services.
Wage
money earned in exchange for work
