ALL buisness keyterms

Ethics

The basic principles that govern your behavior.

Ethical Principles

Standards that govern behavior; not dependent on circumstance.

Ethical Situation

An issue in which you must decide whether something is right or wrong

Integrity

Adhering to an established set of personal ethics and sound moral principles; acting with honesty in all situations

Trustworthy

Reliable; deserving the confidence of others

Accountability

The condition of having to answer for or be liable for your actions; accepting responsibility for your decisions

Transparency

The quality of being just as one seems; being open and truthful when communicating

Fairness

The ability to make judgments without favoritism or self-interest; engaging in fair competition and creating equal relationships

Respect

Regard or esteem; honoring the rights, freedoms, views, and property of others

Rule of Law

Complying with laws and regulations

Viability

The long-term value of your choices

Arrogance

An inflated sense of self-importance

Consequence

The result of an action

Dilemma

A difficult situation in which you are required to make a decision

Ethical dilemma

An issue in which you must decide whether something is right or wrong; sometimes referred to as an ethical situation

Intuition

Instinct; gut feeling

Role model

A person whose behavior is imitated by others

Brick and mortar

A business that operates out of a physical facility (instead of online)

Builders

A type of producer that constructs roads, bridges, buildings, houses, etc.

Consumers

People who use goods and services to satisfy their wants

E-tailers

Retailers who operate solely online

Manufacturer

A type of producer that changes the shapes or forms of materials so that they will be useful to consumers

Producers

The people who make or provide goods and services

Raw-goods producer

A type of producer that provides goods in their natural state

Retailer

A business that buys consumer goods or services and sells them to the ultimate consumer

Service business

A type of business that performs intangible activities that satisfy the needs and wants of consumers or industrial users

Social responsibility

The duty of business to contribute to the well-being of society

Trade industries

Businesses that buy and sell goods to others; retailers and wholesalers

Wholesalers

Intermediaries who help move goods between producers and retailers by buying goods from producers and selling them to retailers

Capital goods

Manufactured or constructed items that are used in the production of goods and services

Consumer goods and services

Products produced for personal consumption

Consumption

The process or activity of using goods and services; The economic process or activity of using goods and services

Demand

The quantity of a good or service that buyers are ready to buy at a given price at a particular time

Distribution

The economic process or activity by which income is divided among resource owners and producers

Economic goods

Physical objects that are useful, scarce, and transferable and which satisfy economic wants

Economic resources

The human and natural resources and capital goods used to produce goods and services

Economic services

Productive acts that are useful, scarce, and transferable and which satisfy economic wants

Economic want

A desire for something that can only be satisfied by spending money

Economics

The study of how to meet unlimited, competing wants with limited resources

Elastic demand

A form of demand for products in which changes in price correspond to changes in demand

Elasticity

An indication of how changes in price will affect changes in the amounts demanded and supplied

Equilibrium

The point at which the quantity supplied is equal to the quantity demanded

Excess demand

The situation that exists when demand is greater than supply

Excess supply

The situation that exists when supply is greater than demand

Exchange

The economic process of trading one good/service for another

Factors of production

Productive resources; human and natural resources and capital goods

Human resources

People who work to produce goods and services

Industrial goods and services

Products purchased by producers for resale, to make other goods and services, and/or to use in business operations

Inelastic demand

A form of demand in which changes in price do not affect demand

Law of demand

Economic principle which states that the quantity of a good or service that people will buy varies inversely with the price of the good or service

Law of supply

Economic principle which states that the quantity of a good or service that will be offered for sale varies in direct relation to its price

Law of supply and demand

Economic principle which states that the supply of a good or service will increase when demand is great and decrease when demand is low

Natural resources

Items found in nature that are used to produce goods and services

Need

Something required or essential that is lacking

Noneconomic want

Desires for things that can be obtained without spending money

Opportunity cost

The benefit that is lost when you decide to use scarce resources for one purpose rather than for another

Price

The amount of money paid for a good, service, or resource

Production

The economic process or activity of producing goods and services

Scarcity

A condition resulting from the gap between limited resources and unlimited wants for goods and services

Supply

The quantity of a good or service that sellers are able and willing to offer for sale at a specified price in a given time period

Trade-off

Giving up all or a part of one thing in order to get something else

Want

A desire for something that is not required

Command economy

An economic system in which all or many of the means of production and distribution are owned and controlled by the government

Communism

A command economic system in which the government controls the economic system and does not allow private ownership of the means of production and distribution

Economic system

The organized way in which a country handles its economic decisions and solves its economic problems

Market economy

An economic system in which the questions of what, how, and for whom goods will be produced are answered by individuals and businesses in the marketplace

Socialism

A modified command economic system in which government owns the basic means of production and allows private ownership of businesses as well

Traditional economy

An economic system in which people produce only what they must have in order to exist; all economic decisions are based on habit and tradition

Entrepreneur

An individual who

Private enterprise/free enterprise

An economic system in which individuals and groups, rather than the government, own or control the means of production–the human and natural resources and capital goods used to produce goods and services

Small business

A business that employs 500 or fewer people

Avoidance

A risk-response strategy that involves choosing not to do something that is considered risky

Business risk

The possibility of loss (failure) or gain (success) inherent in conducting business

Competition

The rivalry between two or more businesses to attract scarce customer dollars

Cost of goods

The amount of money a business pays for the products it sells or for the raw materials from which it produces goods to sell; the amount of money a business pays for the products (or for any part of the products) it sells

Direction competition

Rivalry between or among businesses that offer similar types of goods or services

Economic risks

The possibility of loss or failure that occurs as a result of the economy

Expenses

The money that a business spends

Gross profit

Money left after the cost-of-goods expense is subtracted from total income (income from sales-cost of goods=gross profit)

Human risks

The possibility of loss or failure from human error

Income

The money received by resource owners and by producers for supplying goods and services to customers

Indirect competition

Rivalry between or among businesses that offer dissimilar goods or services

Market structure

The type of market, or environment, in which businesses operate

Monopoly

A type of market structure in which a market is controlled by one supplier, and there are no substitute goods or services readily available

Natural risks

The possibility of loss or failure from nature

Net profit

Money left after the cost-of-goods expense and the operating expense are each subtracted from the total income (gross profit-operating expense=net profit)

Nonprice competition

A type of rivalry between or among businesses that involves factors other than price

Oligopoly

A market structure in which there are relatively few sellers, and industry leaders usually determine prices

Operating expenses

All of the expenses involved in running a business

Perfect competition

A market structure in which there are many businesses selling a lot of identical products for about the same price to many buyers; also known as pure competition

Price competition

A type of rivalry between or among businesses that focuses on the use of price to attract scarce customer dollars

Profit

Monetary reward a business owner receives for taking the risk involved in investing in a business; income left once all expenses are paid (income-expense=profit)

Profit motive

The desire to make a profit, which moves people to invest in business

Pure risks

Chances of loss that carry with them the possibility of loss or no loss

Reduction

A risk-response strategy that involves trying to reduce the chance of loss or severity of loss

Regulated monopolies

A monopoly that the government allows to exist legally under controlled conditions

Retention

A risk-response strategy that involves assuming responsibility for the risk rather than transferring it

Speculative risks

Chances of loss that may result in loss, no change, or gain

Transfer

A risk-response strategy that involves moving the impact of a risk to someone or something else

Accounting

keeping accurate and useful financial records; and analyzing and interpreting the recorded information.