Business Lecture Notes Flashcards

Flashcards of vocabulary terms from the business lecture notes.

Scarcity

The fundamental economic problem arising from unlimited wants and limited resources, forcing choices and trade-o s.

Bodily Injury Liability Insurance

Covers injuries to others in an accident caused by the policyholder.

Comprehensive Insurance

Covers damage to the policyholder's vehicle from non-accident causes (e.g., theft, vandalism, natural disasters).

Collision Insurance

Covers damage to the policyholder's vehicle in an accident.

Deductible

The amount the policyholder pays out-of-pocket (pays themselves) before the insurance company covers the claim.

Policyholder

The person who purchases the insurance policy and is covered by the policy in case of an accident.

Claim

A formal request for payment from an insurance company.

Premium

The regular payment made to maintain insurance coverage.

Credit

A financial arrangement that allows individuals to borrow money or goods and services with the promise to repay later.

Buying on credit

Acquiring goods or services now and paying for them over time.

Collateral

An asset pledged to secure a loan.

Identity theft

Occurs when someone steals personal information to commit fraud. It can lead to financial loss, damaged credit, and emotional stress.

Command economy

Centralized planning, government control over resources and production.

Market economy

Decentralized decision-making, private ownership, and competition.

Mixed economy

Combines elements of both command and market economies, with government intervention and private enterprise.

Business plan

A detailed document outlining a business's goals, strategies, and financial projections.

Advertising

The promotion of products or services to attract customers.

Marketing

Involves identifying, anticipating, and satisfying customer needs and wants profitably.

Target market

A specific group of consumers that a business aims to reach with its products or services.

Warranty

A guarantee from the manufacturer or seller that a product will perform as expected for a specific period.

Product liability

The legal responsibility of manufacturers for injuries or damages caused by defective products. Manufacturers are responsible for ensuring product safety and quality.