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Mrs. Roten
Technical and career making decisions.
Term | Definition |
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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. |
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. |
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. | Manufacturing Process of making finished products out of raw materials. Demand The amount of a good or service that consumers will want to purchase at a given price. |
Supply How much producers are willing and able to sell at a given price during some time period. (Along with demand, one of the two key determinants of price). | Loss When your expenses exceed your profit Surplus Overstock or overage |
Resources Anything which is useful and can satisfy a want; the input to production. 2 types (human and natural) | Choice The process by which people decide how to use the scarce resources available to them; the act of selecting from among alternative uses of a limited resource. |
Opportunity Cost What must be given up when decisions are made to use scarce productive resources to produce particular goods or services |