Basic Elements Of Business

Front 1

Entrepreneur

Back 1

A person who organizes, manages, and assumes the risks of a business in order to gain profits.

Front 2

Capitalism

Back 2

Economic system in which private individuals own the factors of production.

Front 3

Innovation

Back 3

Inventions that are so new and useful they change society.

Front 4

Assets

Back 4

All items to which a business or household holds legal claim.

Front 5

Inventory

Back 5

Supply of items used in a business, such as raw materials or goods for sale.

Front 6

Liability

Back 6

Legal responsibility of an owner for all debts or claims against a business.

Front 7

Revenue

Back 7

Income recieved from the sale of goods and/or services.

Front 8

Expenses

Back 8

All costs that a business must pay to operate.

Front 9

Profit

Back 9

The difference between a business' revenues and its expenses.

Front 10

Sole Proprietorship

Back 10

Business owned and operated by a single person

Front 11

Partnership

Back 11

Business that two or more individuals own and operate.

Front 12

Corporation

Back 12

Type of organization owned by many people but treated by law as if it were one person; it can own property, make contracts, and so on.

Front 13

Stock

Back 13

Share of ownership in a corporation that entitles the buyer to a certain part of the future profits and assets of the corporation.

Front 14

Limited liability

Back 14

Requirement in which an owner's responsibility for a company's debts is limited to the size of the owner's investment in the firm.

Front 15

Dividend

Back 15

Portion of a corporation's profits paid to its stockholders.

Front 16

Limited Liability Company

Back 16

Type of business that protects members against losing all of their personal wealth; members are taxed as if they were a partnership (Similar to a corporation).

Front 17

Joint Venture

Back 17

Partnership set up for a specific purpose for a short period of time.

Front 18

Merger

Back 18

The legal combination of two or more companies that become one corporation.

Front 19

Franchise

Back 19

Contract in which one business sells to another business the right to use the frachisor's name and sell its product.

Front 20

Competition

(Failure)

Back 20

Not being aware of and dealing with businesses fighting for the same customers.

Front 21

Taxes

(Failure

Back 21

Not being prepared for the money you must pay to the government on all of your profits.

Front 22

Labor Costs

(Failure)

Back 22

Overpaying or underpaying workers without considering market factors.

Front 23

Fines

(Failure)

Back 23

Not being aware of government regulations and laws for quality and safety.

Front 24

Losses

(Failure)

Back 24

Falling victim to shoplifting, vandalism, destructive acts of nature, and lawsuits.

Front 25

Market Research

(Success)

Back 25

Keeping careful watch on the likes and dislikes of consumers (Trends and Fads).

Front 26

Marketing

(Success)

Back 26

Making sure consumers are aware of your goods and/or services (a.k.a advertising).

Front 27

Incentives

(Success)

Back 27

Providing small rewards for customers to buy from your business (Coupons, Rebates, etc).

Front 28

Efficiency

(Success)

Back 28

Finding ways to make things cheaper and/or easier (Using better technology).

Front 29

Innovation

(Success)

Back 29

Creating goods and/or services that are new and fresh in the market or change society.

Front 30

Goods

Back 30

Produced by companies to be bought by consumers. (Food)

Front 31

Services

Back 31

Provided by a business to a consumer. (Car repair)

Front 32

Risk

Back 32

The chance that is taken by an enrepreneur in creating a new business.

Front 33

Target Market

Back 33

The consumer that a business is trying to sell to.

Front 34

Unlimted Liability

Back 34

Owner is responsible for everything and can be forced to give up their personal things to cover company debts.