AP BPF Master Glossary Sheet: Unit 1, Part 1 (1.1-1.4)

Vocabulary flashcards created from the AP BPF Master Glossary Sheet covering terms 1 through 20 of Unit 1, Part 1.

Business

A firm that produces or purchases goods or services and then sells them.

Competitive Advantage

One business having a position of superiority over another.

Consumer

The user of a good or service.

Customer

The buyer of a good or service.

Demand

In a market, the quantity of all goods or services buyers are willing and able to purchase.

Good

A physical item that a business offers to meet consumer needs and wants.

Market Activity

Any human action that involves the production, distribution, purchase or sale of goods and services performed for money, pay, or profit.

Minimum Viable Product (MVP)

The simplest version of a product that serves its intended purpose and allows for customer feedback.

Monopoly

A market structure with only one seller.

Producer

Any person, company, or government that creates goods or provides services.

Product Differentiation

Offering something that is unavailable from competitors.

Profit

Revenue minus the costs of making a product and operating the business.

Revenue

The money received in exchange for goods or services.

Service

An intangible act, assistance, or useful labor performed by one party to benefit another.

Subsidy

Financial assistance that a government provides to promote business activity.

Supply

In a market, the quantity of all goods or services sellers are willing and able to provide at all prices.

Value

The worth assigned to a good or service based on its perceived fit with customer's needs and wants.

Value Capture

Occurs when a business can charge customers a price that exceeds the cost of providing the product.

Value Creation

Occurs when a business offers a product that solves the customer's problem or satisfied their needs and wants.

Viability

Whether a product can offer intended customers enough value to be profitable.