| Question |
Answer |
| Free Enterprise System |
A country where people are free to produce the goods and services they chose. |
| Profit |
A buisness that earns more money than they spend. |
| Loss |
A business that spends more money than they earn. |
| Entrepreneurs |
transform ideas for products or services into real-world business. |
| Capital |
Money supplied by investors, banks, or owners, of a business. |
| Service business |
A company that provides a service for a fee. |
| Merchandising business |
a company that buys finished products and resells them to individuals or other businesses |
| Manufacturing business |
a company that buys raw materials, such as wood or iron ore, and transforms them into finished products through the use of labor and capital. |
| Sole Proprietorship |
a business owned by one person |
| Partnership |
a business owned by two or more persons. |
| Corporation |
a business organization that is recognized by law to have a life of its own. |
| Charter |
Legal permission given to a corporation that gives it certan rights and privileges. It spells out the rules under which the corporation is to operate. |
| Accounting System |
A system designed to collect, document, and report on financial transactions affecting the business. |
| Manual Accounting System |
Accounting information which is processed by hand. |
| Computerized Accounting System |
the financial information is recorded by entering it into a computer. |
| Genneral Accepted Accounting Principles |
Accounting principles used by all accountants |
| Financial Reports |
Summarized information about the financial status of a business |
| Financial Accounting |
Reporting information to external users |
| Management Accounting |
Reporting information to internal users. |
| Business Entity |
Accounting assumption that says that a company exists independently of its owners personal holdings. |
| Accounting Period |
a period of time covered by an accounting report. |
| Going Concern |
An assumption that the business will continue to operate unless it is clear that it cannot survive. |
Beef Production
