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205 EC-003
Term | Definition |
---|---|
Bilk | Cheat, swindle, defraud |
Business risk | The possibility of loss(failure) or gain (success) inherent in conducting business |
Competition | The rivalry between two or more businesses to attract scarce customer dollars |
Contract | Agreement between two or more businesses or individuals stating that one party is to do something in return for something provided by the other party |
Corporation | A form of business ownership that is owned by stockholders who have purchased units or shares of the company |
Demand | The quantity of a good or service that buyers are ready to buy at a given price at a particular time |
Demographics | The physical and social characteristics of the production |
External risks | Financial risks that a business cannot control, such as inflation and interest rate fluctuations |
Financial risk | Possible events and situations that directly impact company's cash flow |
Free enterprise | An economic system in which individual and groups, rather than the government , own or control the means of production - the human and natural resources and capital gods used to produce goods and services; also known as private enterprise |
Guarantee | A promise made to the consumer that a product's purchase price will be refunded if the product is not satisfactory; often called a money -back guarantee |
Hazard risks | Potential events or situations that can cause injury or harm to people, property, or the environment |
insurance | A contractual agreement in which one company (Insurer) will pay for specified losses incurred by the other company (insured) in return for installment payments (premium) |
internal risks | Financial risks that are controlled by the business, such as poor budgeting , inaccurate financial data, and inadequate accounting processes |
Investment | The use of money to generate profit or gain |
Lease | A contract to use property that belongs to someone else for specific period of time and for a specific amount of money |
Liability insurance | A contractual agreement that provides compensation for losses that a person or business is responsible for |
Markets | Arrangements for the buying and selling of goods and services |
Obsolescence | The state of being outmoded or unfashionable |
Operational risks | Possible events and situations resulting from employee actions, core processes, and daily business activities |
Partnership | A form of business ownership in which the business is owned by two or more persons |
Profit | Monetary reward business owner receives for taking the risk involved in investing in a business |
Pure risks | Changes of loss that carry with them possibility of loss or no loss |
Return | Income received from an investment |
Revenue | Income |
Shareholder | Anyone who owns stock in a corporation; also known as stockholder |
Sole proprietorship | A business owned by one person who receives all the profits from the business and takes all the risks |
Speculative risks | Changes of loss that may result in loss , no change, or gain |