Chpt 1: Business Basics Flashcards
Profits
Earned when a company’s revenue exceeds its expenses
Goods
the physical products offered by a business
Services
the intangible products offered by a business
Factors of Production
The resources used to create goods and services
Business
Entity that offers product to its customers to earn a profit
Competition
Arises when two or more businesses contend with one another to attract customers and gain an advantage
e-commerce
The buying and selling of goods and services through the Internet
Entrepreneur
An individual who takes on the risks of creating, organizing, and operating a business and directs all of a business’s resources
Expenses
The money a business pays out
Financial Capital
Money used to facilitate a business enterprise
Globalization
A movement toward a more interconnected and interdependent world economy
Green economy
An economy that factors ecological concerns into business decisions
Identity theft
The illegal gain and use of other people’s personal information
Intellectual Property
A creation of he mind, such as an idea, invention, literary, or other artistic work; can include symbols, names, images, and designs used in commerce such as patents, trademarks, copyrights, etc.
Labor
A human resource that refers to any physical or intellectual work that people contribute to a business’s production
Local Business
One-of-a-kind business that relies on local consumers to generate business
Multinational Enterprise
A business that manufactures and markets products in two or more countries
National Business
Businesses that have several outlets throughout a country but do not serve an international market
Natural Resources
The raw materials provided by nature that are used to produce goods and services
nonprofit organization
A business that does not pursue profits but instead seeks to service the community through social, educational, or political means
offshoring
When businesses relocate their production facilities overseas or subcontracts at least some of the components of their products to foreign companies around the world to achieve lower manufacturing costs.
Real Capital
The physical facilities used to produce goods and services
Regional Business
A company that serves a wider area than local businesses but does not serve national or international markets
Revenue
The amount of money generated by a business by either selling goods or performing services
