U1 Key Terms-Autumn Liston

Asset

Are what a business owns.

Business

Refers to the aspects of making, selling, and providing products in exchange for money.

Business Function

Are 4 forms of operational activities that play necessary roles in running a business.

Business Model

A plan for making a profit in order to operate.

Demand

Refers to the amount of goods that consumers want.

Economics

The science of how individuals, businesses, and governments, make decisions about satisfying unlimited wants with limited resources.

Good

A tangible item that is produced and sold to consumers.

Liability

Are what a business owes.

Market Research

Research into consumer preferences, to see if there is a demand for products and what prices people will pay.

Need

Something essential to survival.

Net Worth

The total value of a business determined by assets minus liabilities.

Product

Anything that can be bought or sold.

Profit

The financial gain calculated by the difference between amount earned and amount spent by a business.

Service

The performance of a particular task in exchange for money.

Supply

The amount of goods that are available to consumers.

Tax

Mandatory payments to the local, state, and national government for public services.

Want

Something we desire but could ultimately live without.

Company Description

Details about the business, including age, history, legal form of ownership, industry classification, structure, location, number of employees, and primary functions.

Financial Plan

Strategies for how a business will obtain start-up capital, identify sources of financing, and assess the costs and benefits of resources.

Management Plan

How a company will be organized.

Marketing Plan

Plans for maintaining and building the customer base, pricing, promotion, and advertising plans.

Mission Statement

A formal explanation of a company’s goals, and will indicate what a company does and why.

Pro Forma Financial Statement

Projections of what the entrepreneur expects out of the sales and expenses of the business.

Revenue

revenue the income earned by a business and expenses a business is expected to incur.

Business-to-Business (B2B)

When businesses sell products to other businesses, they are operating within a business-to-business (B2B) market.

Business-to-Consumer (B2C)

Businesses that sell directly to consumers are part of the business-to-consumer (B2C) market.

Cooperative

a type of business that is owned and managed by members of a group who benefit from services the business provides.

Corporation

a business owned by stockholders who share in profits and losses.

Limited Liability Company

a type of ownership that joins elements of a corporation and a partnership.

Partnership

A form of business owned by two or more individuals who share management and profits.

Regulations

Types of laws that declare government control.

S-Corporation

a corporation that requires its owners to file their profits and losses on their personal tax returns.

Sole Proprietorship

A business owned and operated by a single individual.