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40 Cards in this Set

  • Front
  • Back
Simple definition-
Business
Organization that provides goods or services to earn profits.
Simple definition-
Profits
Difference between a business's revenues and its expenses.
Simple definition-
Domestic Business Environment
The environment in which a firm conducts its operations and derives its revenues.
Simple definition-
Global Business Environment
The international forces that affect a business.

International Level: Trade agreements, international economic conditions, political unrest, etc..

Immediate Level: Suppliers, cultures, competitors, currency values.
Simple definition-
Technological Environment
All the ways by which firms create value for their constituents.
Simple definition-
Political-Legal Environment
The relationship between business and government.
Simple definition-
Sociocultural Environment
The customs, mores, values, and demographic characteristics of the society in which an organization functions.
Simple definition-
Economic Environment
Relevant conditions that exist in the economic system in which a company operates.
Simple definition-
Economic System
A nation's system for allocating its resources among its citizens.
Simple definition-
Factors Of Production
Resources used in the production of goods and services.
Labor, capital, entrepreneurs, physical resources, and information resources.
Simple definition-
Labor (Human Resources)
Physical and mental capabilities of people as they contribute to economic production.
Simple definition-
Capital
Funds needed to create and operate a business enterprise.
Simple definition-
Entrepreneur
Individual who accepts the risks and opportunities involved in creating and operating a new business venture.
Simple definition-
Physical Resources
Tangible items organizations use in the conduct of their businesses.
Simple definition-
Information Resources
Data and other information used by businesses.
List me:
Factors of Production
Labor
Capital
Entrepreneurs
Physical Resources
Information Resources
List me:
Dimensions of the External Business Environment
Domestic Business Environment
Global Business Environment
Technological Environment
Political-Legal Environment
Sociocultural Environment
Economic Environment
Simple definition-
Planned Economy
Economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions.
Simple definition-
Market Economy
Economy in which individuals control production and allocation decisions through supply and demand.
Simple definition-
Communism
Political system in which the government own and operates all factors of production.
Simple definition-
Market
Mechanism for exchange between buyers and sellers of a particular good or service
Simple definition-
Capitalism
System that sanctions the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive.
Simple definition-
Mixed market Economy
Economic system featuring characteristics of both planned and market economies.
Simple definition-
Privitization
Process of converting government enterprises into privately owned companies.
Simple definition-
Socialism
Planned economic system in which the government owns and operates only selected major sources of production.
Simple definition-
Demand
The willingness and ability of buyers to purchase a good or service.
Simple definition-
Supply
The willingness and ability of producers to offer a good or service for sale.
Simple definition-
Law of Demand
Principle that buyers will purchase (demand) more of a product as its price drops and less as its price increases.
Simple definition-
Law of Supply
Principle that producers will offer (Supply) more of a product for sale as its price rises and less as its price drops.
Simple definition-
Demand and Supply Schedule
Assessment of the relationships among different levels of demand and supply at different price levels.
Simple definition-
Demand Curve
Graph showing how many units of a product will be demanded (bought) at different prices.
Simple definition-
Supply Curve
Graph showing how many units of a product will be supplied (offered for sale) at different prices.
Simple definition-
Market Price (Equilibrium Price)
Profit-maximizing price at which the quantity of goods demanded and the quantity of goods supplied are equal.
Simple definition-
Surplus
Situation in which quantity supplied exceeds quantity demanded.
Simple definition-
Shortage
Situation in which quantity demanded exceeds quantity supplied.
Simple definition-
Private Enterprise
Economic system that allows individuals to pursue their own interests without undue governmental restriction.
List me:
The four elements of Private Enterprise
1. Private Property Rights
2. Freedom of choice
3. Profits
4. Competition
Simple definition-
Perfect Competition
Market or industry characterized by numerous small firms producing an identical product.
What two conditions must be met in order for "Perfect Competition" to exist?
Conditions:
1. All firms in an industry must be small.
2. The number of firms in the industry must be small
Simple definition-
Natural Monopoly
Industry in which one company can most efficiently supply all needed goods or services.