ITB final

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Consumer

A person who buys and uses goods and services.

Demand

The quantity of a good or service that consumers are willing and able to buy.

Supply

The quantity of a good or service that businesses are willing and able to provide.

Market Economy

Resources are owned and controlled by the people of the country.

Opportunity Cost

The value of the next best alternative that you were not able to choose.

Mission Statement

A short, specific written statement of the reason a business exists and what it wants to achieve.

Partnership

A business owned and controlled by two or more people who have entered into an agreement.

Proprietorship

A business owned and run by just one person.

Intermediaries

A business involved in selling the goods and services of producers to consumers and other businesses.

Business Plan

A written description of the business idea and how it will be carried out, including all major business activities.

Entrepreneur

Someone who takes a risk in starting a business to earn a profit.

Small Business

An independent business with fewer than 500 employees.

Core Values

The important principles that will guide decisions and actions in the company.

Human Relations

The way people get along with each other.

Leadership

The ability to motivate individuals and groups to accomplish important goals.

Compensation

The amount of money paid to an employee for work performed.

Diversity

The comprehensive inclusion of people with differences in personal characteristics and attributes.

Downsizing

A planned reduction in the number of employees needed in a firm in order to reduce costs and make the business more efficient.

Glass Ceiling

An artificial limit placed on minority groups moving into positions of authority and decision-making.

Outsourcing

Removes work from one company and sends it to another company that can complete it at a lower cost.

Work Environment

The physical conditions and the psychological atmosphere in which employees work.

Salary and Wages

Direct payment of money to an employee for work completed.

Cash Flow Statement

A summary that shows total income and spending for a given time period.

Fixed Expense

An expense that does not change from month to month.

Money Management

Day-to-day financial activities necessary to manage current personal economic resources while working toward long-term financial security.

Net Worth

Total assets minus total liabilities.

Variable Expense

An expense that changes from month to month.

Bank Statement

A report on the status of your account.

Debit Card

Card used for ATM transactions.

Endorsement

Written evidence that you received payment or that you transferred your right of receiving payment to someone else.

Credit

The privilege of using someone else's money for a period of time.

Interest

The cost of using someone else's money.

Annual Percentage Rate

A disclosure required by law that states the percentage cost of credit on a yearly basis.

Installment Loan

A loan in which you agree to make monthly payments in specific amounts over a period of time.

Collateral

Property that is used as security.