Marketing Study Guide Chp 2
The amount of money remaining from revenues after all expenses are paid - Profit
\ The study of how goods and services are produced, distributed, and consumed - Economics
\ The possibility of financial gain or loss or personal injury - Risk
\ A report developed to predict the expenses to be incurred and revenues to be received - Forecast
\ The business is legally responsible for damages - Liable
\ Involves preventing, reducing, or lessening the negative impacts of risk - Risk Management
\ The income that is distributed to investors- ROI (Return on Investment)
\ A system of deciding what is right or wrong in a reasoned and impartial manner - Ethics
\ The amount of satisfaction a person receives from the consumption of a particular product or service - Economic Utility
\ A financial statement that shows a company’s assets, liabilities, and net worth at a specific point in time - Balance Sheet
\ A plan for how available funds will be spent -Budget
\ Shows revenues and expenses for a specific period of time reveals company’s profit or loss - Income Statement
\ High standards of rules and guidelines - Principles
\ Making decisions to use resources in ways that result in the greatest profit - Profit Motive
\ Macroeconomics - the study of the economics of the entire society
\ Microeconomics- the study of the relationships between individual consumers and producers
\ form utility - when the physical characteristics of a product or service are improved
\ time utility- making the product or service available when the customer wants it
\ place utility - the product is available where it is wanted
\ possession utility - the product or service is available at an affordable price and easily obtainable
Natural Risk- Weather, Natural Disasters
\ Human Risk - Employees being bad
\ Economic Risk- Loss of money
\ Gain Or Loss Risk- (speculative risk)- There is a chance of loss or gain
\ Controllable Risk- It can be controlled or prevented (Opposite:Uncontrollable risk)
\ Insurable Risk- When you are prepared for risk or losses and you can estimate and save money.
\ Risk Avoidance- When you avoid risky situations from happening
\ Risk Insurance- Having money or other financial ways to plan for a future risk that may happen.
\ Risk Transfer- When you transfer a risk to another company. If someone gets hurt of something
bad might happen, the risk will go to others
\ Risk Retention- Setting aside funds to help predict and loosen the loss of a risk in the future.
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