Terminology Flashcards
Business Cycles
Economic or trade cycle. Downward and upward movement of gross domestic product.
Market Niche
A segment of a larger market that can be defined by its own unique needs, preferences or identity that makes it different from the market at large.
Interest
Money paid regularly at a particular rate for the use of money lent, or delaying payments from a debt.
Consumer Guarantees
An automatic right given to consumers buying a product or service. Refer to consumer rights.
Contract
A legally binding agreement between two or more individuals.
Comparison Shopping
Comparing certain factors of a product with that of another.
Caveat Emptor
It means ‘let the buyer be aware’ if they do not get warranty. This existed before consumer laws were introduced.
Dividend
A surplus of money that can be either reinvented in the business or paid out to shareholders.
Creditor
An entity that extends credit, giving another entity permission to borrow money to be repaid in the future.
Mass Market
Goods produced on a large scale for a significant amount of end consumers.
Merchantable Merchandise
Must be acceptable to be sold and be a product in which it is advertised to be.
Wants
Human desires that motive people’s actions and are satisfied when goods are consumed
Needs
A resource that is required for basic survival needs.
Scarcity
The gap between insufficient resources and the theoretical needs that people want.
Opportunity Costs
Having to give up purchasing something to afford something else.
