Chapter 1 Vocabulary Flashcards
Activity that provides goods or services to consumers for the purpose of making a profit.
Profit-making Business
Difference between the revenue that a company brings in from selling goods and services and the costs of generating this revenue.
Profit
Organizations established to provide social or educational services.
Not-for-profit Organizations (Nonprofit)
A business that, beyond the profit motive, has a social mission built into its business model.
For-profit Social Enterprise
Process of planning for, organizing, directing, and controlling a company’s resources so that it can achieve its goals.
Management
Person who designs and oversees the process that converts resources into goods or services.
Operations Manager
The activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Marketing
Financial advisor responsible for measuring, summarizing, and communicating financial and managerial information.
Accountant
Activities involved in planning for, obtaining, and managing a company’s funds.
Finance
Resources consisting of land, labor, capital (money, buildings, and equipment), and entrepreneurial skills combined to produce goods and services.
Factors of Production
Means by which a society makes decisions about allocating resources to produce and distribute products.
Economic System
Economic system featuring the highest level of government control over allocation and distribution.
Communism
Economic system falling between communism and capitalism in terms of government control over allocation and distribution.
Socialism
Economic system in which most businesses are owned and operated by individuals.
Free Market System
Economic system featuring the lowest level of government control over allocation and distribution.
Capitalism
Economic system that relies on both markets and government to allocate resources.
Mixed Market Economy
Process of converting government-owned businesses to private ownership.
Privatization
The study of the production, distribution, and consumption of goods and services.
Economics