Mcgraw-Hill Intro To Business Ch1 Vocab

Front 1

What is business?

Back 1

Business is a goal directed behavior aimed at getting and using productive resources to buy, make, trade and sell goods that can be sold at a profit.

Front 2

What are the 4 productive resources?

Back 2

Land
Labor
Capital
Enterprise

Front 3

Operating Costs

Back 3

The costs of acquiring and using the 4 productive resources to make and sell goods and services.

Front 4

Product

Back 4

Any kind of good or service that other people value or want.

Front 5

Value

Back 5

How much utility a product gives customers; How well it satisfies
their desires or needs.

Front 6

Price

Back 6

A way of measuring the value of a product by how much customers are willing to pay for it.

Front 7

Business Model

Back 7

A company's plan of action to use resources to create a product that will give it a competitive advantage.

Front 8

Competitive Advantage

Back 8

A company's ability to offer customers a product that has more value to them than similar products offered by other companies.

Front 9

Sales Revenues

Back 9

The amount of money or income that a company generates from the sale of a product.

Front 10

Profit

Back 10

The total amount of money left over after operating costs have been deducted from sales revenues.

Front 11

Capital

Back 11

Profit that is kept in a company and invested in its business.

Front 12

Wealth

Back 12

The sum total of the resources, assets, riches and material possessions owned by people and groups in society.

Front 13

Non-profit Organization

Back 13

An Organization that is not in the business to make profit for stockholders but to provide value to the people and groups they serve.

Front 14

What is a business system?

Back 14

The combination of commerce, occupations, and organizations that result in the production and distribution of goods.

Front 15

Business Commerce

Back 15

Is the process through which people produce and then trade, barter or exchange valuable goods and services to better fulfill their wants and needs.

Front 16

Trade

Back 16

The exchange of products using money.

Front 17

Barter

Back 17

The exchange of one product directly for another.

Front 18

What is Diminishing Marginal Utility?

Back 18

The value we receive from additional units of an identical product declines as we possess or consume more of it.

Front 19

What is the Law of Demand?

Back 19

The principle that states as the price of a product rises, Consumers will buy less of it, and that as the price falls consumers will buy more of it.

Front 20

What is the Law of Supply?

Back 20

As the price of a product rises, producers will supply more of it, and as the price falls, producers will supply less of it.

Front 21

Market

Back 21

buyers and sellers for a particular product.

Front 22

Market or Going Price

Back 22

Happens when as much of a good is being supplied as people want to buy , so the price is neither increasing nor decreasing.

Front 23

Industry

Back 23

is a group of companies that make products that are similar or close substitutes for each other.

Front 24

Profitability

Back 24

A measurement of how well a company is making use of its resources relative to its competitors.

Front 25

Premium Price

Back 25

The higher a seller is able to charge versus what competitors can charge.

Front 26

Specialization

Back 26

The process by which people become more skilled and productive when they perform a narrowly defined range of tasks specific to an occupation or job.

Front 27

Business Occupation

Back 27

The acquired set of specialized skills that enable a person to create valuable goods and services that can be traded for a profit.

Front 28

What is the Invisible Hand of the Market Principle?

Back 28

That the pursuit of self-interest in the market place naturally leads to the improved well-being of society in general.

Front 29

Monopoly

Back 29

A situation in which one person or company controls the supply of a particular product and thus can charge an artificial high price for it.

Front 30

Human Capital

Back 30

A person's stock of knowledge, skills, experience, judgment, personality, and ability.

Front 31

Transaction Costs

Back 31

The costs of bargaining, negotiating, monitoring, and regulating exchanges between people in business.

Front 32

Teamwork

Back 32

A phenomenon that occurs when people pool their skills to create more valuable products than they could create alone.

Front 33

What is Business Organization?

Back 33

A tool that empowers people to shape and control the behavior of other people to produce goods and services.

Front 34

Organizational Sructure

Back 34

The framework of task and authority relationships that coordinates people so they work towards a common goal.