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BBI2O1- 1.1 Vocab
Introduction to Business: Unit 1, Chapter 1 Economic Basics
Term | Definition |
---|---|
PROFIT | The income that is left after all the costs and expenses are paid. |
EXPENSES | Expenditures that are involved in running a business. |
SOLVENCY | The ability to pay your debts and meet financial obligations. |
NON-PROFIT ORGANIZATION | An organization that does not seek profit as it's primary motive, but instead raises funds for a specific goal. |
(SMB) SMALL/MEDIUM-SIXED BUSINESSES | Any business that employs fewer than 500 people. |
GOODS | An item that can be seen and touched. |
SERVICES | Assistance provided usually in return for payment, that satisfies needs and wants of people or businesses but that does not result in a product that can be touched. |
PRODUCERS | Businesses that make goods or provide services. |
CONSUMERS | People who use goods and services however, do not necessarily buy them. |
CUSTOMERS | People who buy goods and services however, do not necessarily use them. Patrons of a particular store or business. |
MARKETPLACE | Any location where producers and consumers come together to engage in the buying or selling of goods and services. |
COMPETITION | A situation in which two or more businesses try to sell the same type of product or service to the same customer. |
OBSOLETE | Goods that people no longer want that new or improved goods have replaced. |
PRICING POWER | When businesses are in control and can charge high prices and raise prices when costs go up. |
CONSUMER PURCHASING POWER | When consumers have the power to choose where they will buy goods and services, and how much they will pay for them. |
ENTREPRENEURS | People that take risks in order to become a professional/expert in all aspects of their own business. They are essentially the boss of their own business. |
NEEDS | Goods or services that are always in demand as necessities essential to life for all consumers. "An item necessary for survival-food, clothing, shelter, water." |
WANTS | Goods or services that are not necessary to consumer survival but add comfort and pleasure. |
REVENUE | The money a business recieves for the products and/or services it sells or from it's investments. CALCULATED BY: Revenue= #'s Sold x Price, Profit= Revenue-Expenses |
INVENTORY | Sometimes reffered to as stock or supply, is the quantity of goods and materials kept on hand. |
ECONOMIC RESOURCES (Factors of Production) | The means through which goods and services are made available to customers. |
ECONOMIC SYSTEMS | The way businesses and governments work together to provide goods and services to consumers. |
NATURAL RESOURCES | Materials that come from the Earth; water and air. |
HUMAN RESOURCES | The people who work to create goods and services. |
CAPITAL RESOURCES | A resource such as equipment, a building, or money that is used to produce goods and services. |
INTERDEPENDENCE | The relationship/ correlation between two business's reliance on one another as providers of their goods and services. |
DEMAND | The quantity of a good or service that consumers are willing and able to buy at a particular date. |
LAW OF DEMAND | The relationship between fluctuating prices and demand. This is an inverse relationship. |
SUPPLY | The quantity of a good or service that businesses are willing and able to provide within a range of prices that people would be willing to pay. |
LAW OF SUPPLY | The relationship of the increase of the quantity of goods or products supplied as a direct result of prices increasing. |