AICE Business Chapter 1 Vocab

Entrepreneur

An individual who has the idea for a new business starts it up and carries most of the risks but benefits from the rewards.

Customers

An individual consumer or organization that purchase goods or services from a business.

Consumers

An individual who purchases goods or services for personal use

Consumer Goods

The physical and tangible goods sold to consumers that are not intended for resale. Includes durable and non-durable goods.

Consumer Services

The non-tangible products sold to consumers that are not intended for resale.

Factors of Production

The resources needed by a business o produce goods or services.

Capital Goods

The physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles.

Enterprise

The action of showing initiative to take the risk to set up a business.

Adding Value

Increasing the difference between the cost of bought-in materials and the selling price of the finished goods.

Added Value

The difference between the cost of purchasing bought -in materials and the selling price of the finished goods.

Branding

The process of differentiating a product by developing a symbol, name, image, or trademark for it.

Opportunity Cost

The next most desired option that is given up

Multinational Business

A business organization that has its headquarters in one country, but has operating branches, factories, and assembly plants in other countries.

Intrapreneur

A business employee who takes direct responsibility for turning an idea into a profitable new product of business venture.

Business Plan

A written document that describes a business, its objectives, its strategies, the market it is in, and its financial forecasts.