Deca

Budget deficit—occurs when a government spends more than it takes in

Budget surplus—occurs when a government spends less than it takes in

Business ethics—rules about how businesses and their employees ought to behave

Capital resources—the products and money used to produce goods and services

Capitalism—the private ownership of resources by individuals, rather than by the government

Code of ethics—a set of rules for guiding the action of employees or members of an

organization

Command economy—an economy in which resources are owned and controlled by the

government

Competition—the rivalry among businesses to sell their goods and services; the struggle

between businesses for customers

Deflation—a decrease in the general level of prices

Demand—the quantity of a good or service that consumers are willing and able to buy

Depression—the phase of the business cycle that is marked by a prolonged period of high

unemployment, weak consumer sales, and business failures

Economic decision-making—the process of choosing which wants, among several options, will

be satisfied

Economic systems—a nation’s plan for answering the three basic economic questions

Entrepreneurial resources—all the skills of people who take the risks to start a business

Equilibrium price—the price where supply and demand meet

Ethics—principles of morality or rules of conduct

Exports—goods and services sold to other countries

Factors of production—economic resources, including natural resources, human resources, and

capital resources

Foreign trade—business activities needed for creating, shipping, and selling goods and services

across national bordersGoods—things you can see and touch; tangible items; products you can purchase to meet your

needs and wants

Gross Domestic Product (GDP)—the total dollar value of all final goods and services produced

in a country during one year

Imports—items brought from other countries

Inflation—an increase in the general level of prices

Labor (human) resources—people producing goods and services; workers; employees

Market economy—an economy in which the resources are owned and controlled by the people

of the country

Mixed economy—an economy that combines elements of the command and market economies

National Debt—the total amount owed by the federal government

Natural resources—raw materials supplied by nature

Needs—things that are required in order to live

Productivity—the production output in relation to a unit of input, such as a worker

Profit—the amount of money available to the business after all costs and expenses have been

paid

Prosperity—the peak of the business cycle, it is a period in which most people who want to

work are working, businesses produce goods and services in record numbers, wages are good,

and the rate of gross domestic product growth increases

Recession—the phase of the business cycle in which demand begins to decrease, businesses

lower production, unemployment begins to rise, and gross domestic product growth slows for

two or more quarters of the calendar year

Recovery—the welcome phase in the business cycle in which unemployment begins to

decrease, demand for goods and services increases, and gross domestic product begins to rise

again

Resources—also known as factors of production

Scarcity—not having enough resources to satisfy every need

Services—activities that are consumed at the same time they are produced

Social Responsibility—the duty of a business to contribute to the well-being of a community

Supply—the quantity of a good or service that businesses are willing and able to provideTraditional economy—an economy in which goods and services are produced the way that have

always been produced. It is used in countries that are less developed and are not yet

participating in the global economy

Unemployment rate—the portion of people in the labor force who are not working

Wants—things that add comfort and pleasure to your life

Assets—what a company owns; something of value that a person owns

Balance sheet—a report that lists a company’s assets, liabilities, owner’s equity,

and net profit/loss

Business Plan—a written description of the business idea and how it will be

carried out, including all major business activities

Cooperative—a business formed to market products produced by members or to

purchase products needed by the members; It is owned by members, serves their

needs, and is managed in their interest

Corporation—a separate legal entity formed by documents filed with your state.

It is owned by one or more shareholders and managed by a board of directors

Entrepreneur—someone who takes a risk in starting a business to earn a profit

Entrepreneurship—the process of starting, organizing, managing and assuming

the responsibility for a business

Franchise—a written contract granting permission to operate a business to sell

products and services in a set way

Income statement—a report of revenue, expenses, and net income or loss from

operations for a specific period

Innovation—an intervention or creation that is brand new

Intermediary—business involved in selling the goods and services of producers to

consumer and other businesses; helps move the product from the

manufacturer/producer to the end user or consumer

Labor unions—an organized group of employees who negotiate with employers

about issues, such as wages and working conditions

Liabilities—what a company owesLimited liability company—provides liability protection for owners; it has a

simpler set of organizing and operating requirements than a corporation; no

articles of incorporation or bylaws are needed; a simple document much like a

partnership agreement must be developed

Limited liability partnership—a partnership that identifies some investors who

cannot lose more than the amount of their investment, but they are not allowed

to participate in the day to day management of the business

Management—the process of accomplishing the goals of an organization through

the effective use of people and other resources

Manufacturer—businesses who get supplies from other producers and convert

them into products

Marketing—the process of planning and executing the conception, pricing,

promotion, and distribution of ideas, goods, and services to create exchanges that

satisfy individual and organizational objectives; a set of activities that bridges

business with the market or people

Materials Processing—changing the form of raw materials so they can be

consumed or used to make other products

Net worth—the difference between a person’s assets and liabilities

Organizational Chart—a diagram that shows the structure of an organization,

classification of work and jobs, and the relationships among those classifications

Owner’s Equity—the value of the business after liabilities are subtracted from

assets; the value of the owner’s investment in the business

Partnership—A business owned and controlled by two or more people who have

entered into a written agreement

Partnership Agreement—a written agreement among all owners detailing the

rules and procedures that guide ownership and operations

Producer—individuals and organizations that determine what products and

services will be available for sale

Production Process—the activities, equipment, and resources needed to

manufacture a productProfit—the amount of money available to the business after all costs and

expenses have been paid

Retailer—the final business organization in an indirect channel of distribution for

consumer products—the stores where we buy “stuff” like Target or Wegmans

Revenue—all the income that a business receives over a period of time; money

earned by conducting business

Service business—a business that carries out activities that are consumed by its

customers

Small business—an independent business with fewer than 500 employees

Sole Proprietorship—a business owned and run by just one persoN