Business Notes - Unit 1

Profit

Exist to make money, required to pay taxes.

Non-Profit

Purpose of furthering a social cause and providing public benefit.

Demand

The quantity of a good or service that consumers can buy at a given price.

Law of Demand

As prices increase, demand decreases; as prices decline, demand increases.

Supply

The quantity of goods and services that businesses are willing and able to provide at a range of prices.

Law of Supply

As prices increase, producers are willing to supply more of a good; as prices decrease, they provide less.

Equilibrium Price

The point when supply equals demand; the market is balanced.

Sole-Proprietorship

A business owned and operated by one person, responsible for all operations and risks.

Unlimited Liability

The owner is personally responsible for all debts/liabilities of the business.

Partnership

A form of business ownership where two or more people own and operate the business together.

Corporation

A company acting as a single entity by law, owned by stockholders and shareholders.

Limited Liability

Shareholders are not personally liable for the debts of the corporation.

Franchise

A business model where the owner licenses its operations and product branding.

Leading

Motivating, inspiring, and guiding someone to perform their job and meet organizational goals.

Planning

Determining the organization's goals and how to achieve them.

Controlling

Monitoring an organization's performance and taking corrective action.

Organizing

Responsible for arranging people and resources to achieve goals.