Chapter 1

Entreprenuer

an individual who has the idea for a new business, starts it up and carries most of the risk, but benefits from the rewards

Customers

an individual consumer or a business that purchases another company's goods or services

Consumers

an individual who purchases goods and services for personal use

Consumer Goods

the physical and tangible goods sold to consumers

Consumer Services

the non-tangible product sold to consumers that are not intended for resale

Factors of Production

the resources needed by business to produce goods or services

Capital Goods

The physical goods used by industry to aid in the production of other goods and services

Enterprise

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

Adding value

increasing the difference between the cost of purchasing materials and the selling of finished goods

Added value

the difference between the cost of purchasing 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 benefit of the next most desired option which is given up

Multinational business

a business or organization that has its HQ in one country, but with 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 or business virtue

Business Plan

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