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EBME
essential standard 1 - purpose of business
Question | Answer |
---|---|
Profit | Money that remains after a business has paid for the expenses of running the business. (Income > Expenses) |
Profit motive | A person's incentive to work to gain something for himself or herself (that is to make money). |
Competition | Contest between businesses to win customers' business and loyalty |
Needs | Items necessary for existence, such as clothing, food, and shelter. |
Wants | Items that would be nice to have, but are not necessary. |
Consumer | A person who uses goods or services. Many times the consumer is also the customer (purchaser). |
Goods | Items businesses sell that can be physically weighed or measured, such as iPods and CDs. |
Services | Tasks that businesses perform or provide for customers, such as hair cuts and car washes. |
Accounting | The process of recording and reporting the financial data for a business. |
Management | The process of leading and directing all or part of an organization |
Marketing | The process of creating, promoting, and presenting a product to the consumers. |
Information Technology | The process of developing, installing, and implementing computer information systems and applications. IT includes the support and maintenance of computer hardware and software. |
Operations | The activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders. |
Human Resources | The activities that deal with the hiring, firing, training and other personnel (employee) issues. |
Sole proprietorship | A business owned by only one person. |
Partnership | A business owned by two or more people. |
Franchise | A contract between a parent company and a franchisee to use the name and sell the goods or services of the parent company, such as KFC. |
Non-profit organization | A business whose goal is to provide a service rather than to make a profit, such as the American Red Cross. |
Corporation | A business considered separate from the owners of the business by law. The owners are the stockholders. |
Multinational corporation | A company that does business and has business facilities in many countries, such as Coca Cola. |
Accounting | The process of recording and reporting the financial data for a business. |
Management | The process of leading and directing all or part of an organization |
Marketing | The process of creating, promoting, and presenting a product to the consumers. |
Information Technology | The process of developing, installing, and implementing computer information systems and applications. IT includes the support and maintenance of computer hardware and software. |
Operations | The activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders. |
Human Resources | The activities that deal with the hiring, firing, training and other personnel (employee) issues. |