| Question | Answer |
| Limited Partnership | Type of ownership where each limited partner is only liable for debt up to
the amount they have invested in the business. |
| General Partnership | Type of ownership where each partner has unlimited liability. |
| Franchisor | The owner of the parent company that grants the rights to use their name and
products. |
| Franchisee | The owner of a franchise. |
| Franchise | An agreement with a company to use their name and sell their products in a given
area. |
| Entrepreneur | People who create, start and manage new businesses |
| Job Interview | : A face-to-face meeting with a potential employer where they will ask questions
about you and your work experience. |
| Job Application | : A form that gathers information about potential employees. Typical information
may include: name, address, education, previous experience, special training and references. |
| Equity | An individual’s value as a stockholder within a company. |
| Liability | All the money that is owed to others by the business |
| Asset | All items that have a cash value that are owned by the business. |
| Variable Expenses | Expenses that change based on the number of units that are produced |
| Fixed Expenses | Expenses that are always the same no matter how many units are produced. |
| Cost of Goods Sold | The amount spent to product and purchase goods that are sold in the
business. |
| Net Sales | Total sales minus returns and allowances. |
| Gross Sales | The total of all sales during a given time period. |
| Budget | A plan to manage finances. |
| Ethics | Values and principles that guide decision |
| GAAP | Generally Accepted Accounting Practices refers to the standard guidelines used in
financial accounting. |
| Investments: | When money is used to make more money |
| Stereotypes: | A standardized conception or image held in common by a group of people. |
| Monopoly | : A business situation in which the business has no competition. |
| Nonprice Competition | When a business focuses on factors other than price. These factors
include: providing quality products, services, and location. |
| . Price Competition | : Competition that centers around meeting or having a lower price than the
competitor. |
| Risk: | The potential that a business takes for loss or failure |
| Shortage | When demand exceeds supply |
| Surplus: | When supply exceeds demand |
| Scarcity: | The economic term for limited resources. |
| Infrastructure | Transportation, utilities and communication services that are necessary for a
country to have for distribution of goods and services. |
| Capital: | Money, buildings or equipment that is used to run a business |
| Labor: | All the resources of people that work. |
| Land | All resources that are from the land, sea or air. These are considered raw materials. |
| Factors of Production | Also known as resources, include: land, labor, capital and
entrepreneurship. |
| Economic Resources | Also known as factors of production, include all the items that are used to
produce goods and services. |
| Brand Promise | A statement that lets the customer know what they can expect from a
company’s products or services. |
| Customer Service Mindset | The belief that the customer is the most important priority of the
business. |
| Staff Meeting | Regular scheduled meetings. These meetings are often held so that staff
members can provide an update on any projects they may be working on. |
| Executive Summary | An introduction and overview of the information contained in a written
plan. |
| Administrative Law | Rules and procedures that are regulated by a government agency |
| Environmental Law | State and federal statutes that protect the environment, wildlife, land,
water and prevent pollution |
| Management | The coordination of resources to reach an organization’s goals. |
| Mentor | A person that serves as a source of information and inspiration to someone with less
experience. |
| Trade Association | A group or organization that serves the people in a given field |
| Trade Shows | A place where businesses can show their products to potential clients |
| Trade Journals | A publication that serves a specific industry |
| Internship: | A way that people can gain work experience in a given field. Internships may or may
not be paid. |
| Networking | A way for business people to meet others that are in business and build a list of
contacts that can be used for future reference or projects. |
| Resume | A summary of a job applicant’s education, skills, experience, activities and references. |
