PCC Exam 1

Business

An organization that provides goods or services to earn profits.

Profits

The difference between a business’s revenues and its expenses.

External Environment

Factors outside the organization’s boundaries that influence and affect the business.

Economic System/Order

A nation’s system of production for allocating its resources and the distribution of goods and services.

Demand

The willingness and ability of buyers to purchase a product.

Supply

The willingness and ability of producers to offer a good or service for sale.

Equilibrium/Market Price

The price at which the supply curve and the demand curve intersect.

Business Cycle

The patterns of short-term ups and downs in an economy.

Gross Domestic Product (GDP)

The total monetary value of all final goods and services produced within a given period of time by a national economy.

Unemployment

The level of joblessness among people actively seeking work in an economic system.

Sole Proprietorship

A business owned and usually operated by one person who is responsible for all of its debts.

Franchise

An arrangement in which a buyer purchases the right to sell the goods or services of the seller.

Entrepreneurship

The process of seeking business opportunities under conditions of risk.

SWOT Analysis

Identification and analysis of organizational strengths and weaknesses and environmental opportunities and threats as part of strategy formulation.

Strategic Management

The process of helping an organization maintain an effective alignment with its environment.

Delegation

The process through which a manager allocates work to subordinates.

Corporate Culture

The shared experiences, stories, beliefs, and norms that characterize an organization.

Virtual Organization

An organization that has little or no normal structure.

Chain of command

Reporting relationships within a company.

Goals

Objectives that a business hopes and plans to achieve.