ITB final

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 Statment

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 require by law that states the percentage cost of credit in 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