AP Business Task 1 Quiz

Organization

structured group of people formed to achieve common goals

Business

an organization that produces or purchases goods or services and then sells them

Customer

the buyer of a good or service

Consumer

is the user of a good or service

Problem - Solution fit

a close match between its product and the problems of intended customers

Value (of a product)

the worth customers assign to it based on how well it serves their needs and wants

Value Creation

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

Value Capture

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

Revenue

when a customer pays the price for the product, the money received in exchange for the product

Profit

which is the revenue received minus the cost of making the product and operating the business

Market opportunity

a set of circumstances favorable for the creation of value by offering a good or service that is new or different from existing offerings

Entrepreneur

is the one who creates a business by initiating the activities, organizing the inputs, and assuming many of the risks of running the business

Financial risks

the possibility of loosing money

Minimal Viable Product

the simplest version of a product that serves its intended purpose and allows for customer feedback