APBIZ TTKs - Unit 1. Topic 1

Key Terms & Definitions

Organization

A structured group of people formed to achieve common goals.

Business

An organization that produces or purchases goods or services and then sells them; most businesses seek profit by selling their products for more than the cost of obtaining them.

Customer

The buyer of a good or service.

Consumer

The user of a good or service.

Problem-Solution Fit

The match between a business' product and the problems of the intended customers.

Value

The worth assigned to a good or service based on its perceived fit with customers’ needs and wants; businesses create value by offering products that solve customers’ problems or satisfy their interests.

Value Creation

Occurs when a business offers a product that solves customers’ problems or satisfies their needs and wants.

Revenue

The money received in exchange for goods or services.

Value Capture

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

Profit

Revenue minus the cost of making the product and operating the business.