chapter 1 Flashcards
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Business
The organized effort of individuals to produce and sell, for profit, the goods and services that satisfy society’s needs.
Free enterprise
the system of business in which individuals are free to decide what to produce, how to produce it, and at what price to sell it.
e-Business
the organized effort of individuals to produce and sell for profit, the goods and services that satisfy society’s needs through the facilities available on the internet.
Profit
what remains after all business expenses have been deducted from sales revenue
Stakeholders
all the different people or groups of people who are affected by an organization’s policies, decisions, and activities
Factors of production
resources used to produce goods and services
Land and natural resources
elements used in the production process to make appliances, automobiles, and other products
Labor
the time and effort used to produce goods and services
Entrepreneurship
a person who risks time, effort, and money to start and operate a business
Capital
the money, facilities, equipment, and machines used in operation of organizations
Microeconomics
the study of the decisions made by individuals and business
Economics
the study of how wealth is created and distributed
Macroeconomics
The study of the national economy and the global economy
Capitalism
an economic system in which individuals own and operate the majority of businesses that provide goods and services
Economy
the way in which people deal with creation and distribution of wealth
