Studied by 1 person
Looks like no one added any tags here yet for you.
Business
An organization that provides goods or services to earn profits.
Profit
The difference between a business’s revenue and expenses.
Consumer Choice
The demand that businesses must consider when running or opening.
External Environment (EE)
Everything outside an organization’s boundaries that might affect it.
Domestic Business Environment
The environment where the firm conducts its operations and derives its revenues.
Global Business Environment
International forces that affect a business, including trade agreements and political unrest.
Technological Environment
All the ways firms create value for their constituents through technology.
Political-Legal Environment
The relationship between business and government, often involving regulation.
Sociocultural Environment
Customs, mores, values, and demographic characteristics of the society in which the organization functions.
Economic Environment
Relevant conditions that exist in the economic system in which a company operates.
Factors of Production
Resources utilized in the production of goods/services, including labor, capital, entrepreneurs, physical resources, and information resources.
Labor
Physical and mental capabilities of people as they contribute to economic production.
Capital
Funds needed to create and operate a business enterprise.
Entrepreneur
A businessperson who accepts the risks and opportunities of creating and operating a new business venture.
Physical resources
Tangible items that organizations use in the conduct of their business
Information Resources
Data and other information used by businesses
Economic System
A nation’s system for allocating its resources among its citizens
Planned Economy
An economic system where the government controls all factors of production and makes all production/allocation decisions.
Market Economy
An economic system where individuals control production and allocation decisions through supply and demand.
Private Enterprise
An economic system that allows individuals to pursue their own interests without undue governmental restriction.
Perfect Competition
Market structure characterized by many buyers and sellers, with identical products.
Monopoly
Market structure characterized by a single producer that sets the price of products.
Business Cycle
Short-term pattern of economic expansions and contractions.
Gross Domestic Product (GDP)
Total value of all goods/services produced within a national economy during a given period.
Inflation
Widespread price increases occurring in an economic system.
Consumer Price Index (CPI)
Measure of the prices of typical products purchased by urban consumers.
Recession
A period during which aggregate output declines.
Fiscal Policies
Government policies regarding how it collects and spends revenue.
Monetary Policies
Policies used to control the size of the money supply.
