Section 1.1 Entrepreneurship and the Economy (Part 1)

entrepreneur

An individual who undertakes the creation, organization, and ownership of a business.

venture

A new business undertaking that involves risk.

entrepreneurship

The process of recognizing an opportunity, testing it in the market, and gathering resources necessary to go into business.

entrepreneurial

Acting like an entrepreneur or having an entrepreneurial mind-set.

economics

The study of how people allocate scarce resources to fulfill their unlimited wants.

free enterprise system

An economic system in which people have important rights: to make economic choices of what products to buy, to own private property, and to choose to start a business and compete with other businesses.

profit

Money that is left over after all expenses of running a business have been deducted from the income.

market structure

The nature and degree of competition among business operating in the same industry; market structure affects market price.

monopoly

A market structure in which a particular commodity has only one seller.

oligopoly

A market structure in which there are just a few competing firms.

goods

Tangible (or physical) products of our economic system that satisfy consumers’ wants and needs.

services

Intangible (nonphysical) products that satisfy consumers’ wants and needs.