BUSI One - Chapter One Vocabulary

Vocabulary flashcards for BUSI One, Chapter One, covering key terms and definitions related to business principles and economics.

Business

An activity that seeks to provide goods or services to others while operating at a profit.

Revenue

The total amount of money a business takes in during a given period by selling goods and services.

Profit

The amount of money a business earns above and beyond what it spends on salaries and other expenses (revenue less expenses).

Loss

Occurs when a business's expenses are more than its revenues.

Entrepreneurs

Individuals who start businesses.

Stakeholders

Anyone who gains or loses from the business's policies.

Nonprofit Organization

A business whose goals do not include making a personal profit for its owners or organizers; they often strive for social gains.

Economic and Legal Environment

Includes freedom of ownership, contract laws, elimination of corruption, and a taxable currency.

Competitive Environment

Focuses on customer service, stakeholder recognition, employee service, and concern for the environment.

Social Environment

Demography impacts buying patterns; includes population shifts that create new opportunities, and the influence of immigrants.

Economics

The study of how society employs resources to produce goods and services for consumption amongst various groups of individuals.

Macroeconomics

Concentrates on the operation of a nation's economy as a whole.

Microeconomics

Concentrates on the behavior of people and organizations in markets for particular products and services.

Command Economies

Economic systems that include socialism and communism.

Free Market Economies

Economic systems based on capitalism.

Brain Drain

The emigration of highly trained or qualified people from a country.

Communism

An economic and political system in which the government makes almost all economic decisions and controls almost all major factors of production.

Capitalism

An economic system in which businesses operate for profit and business people make all decisions.

Invisible Hand Theory

Adam Smith's theory that self-directed gain leads to social and economic benefit for the whole community.

Gross Domestic Product (GDP)

The total value of final goods and services produced in a country in a given year.

Unemployment Rate

The percentage of civilians at least 16 years of age who are unemployed and trying to find a job within the prior four weeks.

Inflation

A general rise in the price of goods or services over time.

Monetary Policy

The management of the money supply and interest rates by the Federal Reserve Bank.