Lesson 1 Flashcards
is an entity that aims to earn a profit by providing products to satisfy the needs of the market
business organization
are the outputs offered by a businesses to satisfy the demands of consumer and industrial markets
goods and services
goods are tangible products such as cars clothing and machinery they have shape and can be seen and touched
tangibility
all goods have some degree of durability beyond the time of purchase
perishability
- goods can be stored for later use
- services and service provider cannot be separated
separability
quality of goods can be controlled through standardization
standardization
is a financial benefit that is realized when the amount of revenue gain from a business activity exceeds the expenses, costs, and tax needed to sustain the activity
profit
any of these that is gained goes to the business owners who may or may not decide to spend it on the business
profit
it is calculated as total revenue less total expenses
profit
it is the amount of money that a company actually receives during a specific period, including discounts and deductions for return merchandise
revenue
provide services to customers rather than products
service business
sell to customer products they buy from other business
merchandising business
turn basic inputs into products which are sold to consumers
manufacturing business
it is a one person business
sole proprietorship
- business relationship between two or more people
- refers to an arrangement where individuals share a business ventures profit and liabilities
partnership
