key words definitions Flashcards
Market
The arena in which buyers and sellers exchange goods and services for money.
Demand
The quantity of a good or service that consumers are willing and able to purchase at a given price.
Supply
The quantity of a good or service that producers are willing and able to offer for sale at a given price.
Revenue
The income generated from normal business operations, calculated as the price of goods or services multiplied by the quantity sold.
Profit
The financial gain obtained when revenue from sales exceeds the costs of production and operation.
Loss
The financial deficit that occurs when the costs of production and operation exceed the revenue from sales.
Break-even point
The level of sales at which total revenues equal total costs, resulting in neither profit nor loss.
Entrepreneur
An individual who creates, organizes, and operates a business, taking on financial risks to do so.
Stakeholder
Any individual or group that has an interest in the success and functioning of a business, including employees, customers, suppliers, and shareholders.
Market research
The process of gathering, analyzing, and interpreting information about a market, including information about potential customers and competitors.
Business plan
A formal written document that outlines the goals of a business, the strategy for achieving those goals, and the financial projections.
SWOT analysis
A strategic planning tool that identifies and analyses the Strengths, Weaknesses, Opportunities, and Threats of an organization.
Cash flow
The movement of money into and out of a business, which is essential for maintaining its liquidity and operations.
Assets
Resources owned by a business that have economic value, such as cash, inventory, property, and equipment.
Liabilities
The financial obligations or debts that a business owes to others, including loans, accounts payable, and mortgages.
Equity
The value of ownership interest in a business, calculated as total assets minus total liabilities.
Economies of scale
The cost advantages that a business can achieve by increasing the scale of production, leading to a reduction in average costs per unit.
Franchise
A type of business arrangement where a franchisor grants a franchisee the right to operate a business using the franchisor’s brand and business model.
Innovation
The process of developing new products, services, or processes that improve efficiency or create new value for customers.
Marketing mix
The combination of factors that a business uses to influence consumers to purchase its products, typically described as the 4 Ps: Product, Price, Place, and Promotion.
Human resources
The department or function within a business that manages the recruitment, training, and welfare of employees.
Organizational structure
The way in which the roles, responsibilities, and authority are arranged within a business to achieve its objectives.
Economy
The system of production, distribution, and consumption of goods and services within a society.
Inflation
The rate at which the general level of prices for goods and services rises, eroding purchasing power.
Interest rate
The cost of borrowing money or the return on savings, usually expressed as a percentage of the amount borrowed or saved.
Globalization
The process by which businesses and other organizations develop international influence or operate on an international scale.
E-commerce
The buying and selling of goods and services over the internet.
Corporate social responsibility (CSR)
A business’s commitment to contribute positively to society and the environment, beyond its financial and legal obligations.
Monopoly
A market structure where a single seller dominates the market with no close substitutes for the product or service offered.
Merger
The combination of two or more companies into a single entity, typically to achieve greater efficiencies and market power.
