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30 Cards in this Set

  • Front
  • Back
an organization that provides goods or services to earn a profit
the difference between a business's revenue and its expenses
external environment
everything outside an organization's boundaries that might affect it
domestic business environment
environment in which a firm conducts its operations and derives its revenues
global business environment
the international forces that affect business
technological environment
all the ways by which firms create values for their constituents
political-legal environment
the relationship between businesses and government
sociocultural environment
the customs, mores, values and demographic characteristics of the society in which an organization functions
economic environment
relevant conditions that exist in the economic system in which a company operates
economic system
a nation's system for allocating its resources among its citizens
factors of production
resources used in the productions of goods and services incl. labor, capital, etrepreneurs, physical resources and information resources
labor (human resources)
physical and mental capabilities of people as they contribute to economic production
funds needed to create and operate a business enterprise
individual who accepts the risks and opportunities involved in creating and operating a new business venture
physical resources
tangible items that organizations use in the conduct of their business
planned economy
economy that relies on a centralized government to control all or most of the factors of production and make all or most production and allocation decisions
market economy
economy in which individuals control production and allocation decisions through supply and demand
political system in which the government owns and operates all factors of production
mechanism for exchange between buyers and sellers of a particular good or service
system that santions the private ownership of the factors of production and encourages entreprenuership by offering profits as an inventive
mixed market economy
economic system featuring characteristics of both planned and market economies
process of converting government enterprises into privately owned companies
planned economic system in which the government owns and operates only selected major sources of production
the willingness and ability of buyers to purchase a food or service
the willingness of producers to offer a good or service for sale
law of demand
principle that buyers will purchase (demand) more of a product as its price drops and less as its price increases
law of supply
principle that producers will offer (supply) more of a product for sale as its price rises and less as it increases
demand and supply schedule
assesment of the relationships among different levels of demand and supply at different price levels
demand curve
graph showing hoe many units of a product will be demanded (bought) at differnt prices
supply curve
graph showing how many units of a product will be supplied (offered for sale) at different prices