Unit 1 Test Flashcards
An organization that uses productive resources to produce a good or service to satisfy a customers needs or wants in exchange for valuables.
Business
Something tangible and of value
Good
An action performed that is tangible and of value.
Service
A necessity for life.
Need
Something one would like to have and is perceived to have value.
Want
The net gain achieved by subtracting expenses from revenue.
Profit
The total income the business brings in from sales.
Revenue.
The cost to keep the business running.
Expenses.
A business with the purpose of making profit.
For Profit.
Business formed for things besides profit.
Non Profit.
Study of economics, and the resources to satisfy needs.
Scarcity.
When buyers and sellers willingly meet to exchange things of value.
Market.
The wealth and resources of a country.
Economy.
The quantity of good or services customers are willing to buy.
Demand.
The study of how we deal with scarcity.
Economics.
The quantity of goods or services that producers are willing to sell.
Supply.
The point where supply and demand meet.
Equilibrium
A business with one owner who gains all responsibility.
Sole Proprietorship.
A business operated by 2 or more people.
Partnership.
A legal entity that is separate from its owners.
Corporation.
Shareholders personal assets are sperate from the corporation.
Limited Liability.
A corporation who’s shares are bought and sold.
Public corporation.
A corporation who’s shares are not sold.
Private corporation.
A corporation run by the federal government.
Crown Corporation
