Intro to Business

Entreprenuer

Person who risks time and money to start and manage a business.

Revenue

The total amount of money a business takes in during a given period by selling goods and services.

Standard of Living

The amount of goods and services people can buy with the money they have.

Stakeholders

All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.

Outsourcing

Contracting with other companies (often in other countries) to do some or all of the functions of a firm, like its production of accounting tasks.

Factors of production

The resources used to create wealth, land, labor, capital, entrepreneurship, and knowledge.

Business environment

The surrounding factors that either help or hinder the development of businesses.

Productivity

The amount of output you generate given the amount of input.

E-commerce

the buying and selling of goods over the internet.

Database

An electronic storage file for information.

Demography

the branch of sociology that studies the characteristics of human populations

Greening

The trend toward saving energy and producing products that cause less harm to the environment.

Land, labor, Capital, Enteprenreurship, and knowledge.

Five factors of production.

Economics

The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among carious competing groups and individuals.

Macroeconomics

the part of economics study that looks at the operation of a nation's economy as a whole.

Microeconomics

the study of how households and firms make decisions and how they interact in markets

Resource development

The study of how to increase resources and to create the conditions that will make better use of those resources

Invisible hand

A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all.

Capitalism

An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit.

The foundations of Capitalism

Right to own private property, right to own a business and keep all that business's profits, the right to freedom of competition, the right to freedom of choice.

Supply

the amount of a product that would be offered for sale at all possible prices that could prevail in the market

Demand

The quantity of products people are willing to buy at different prices at a specific time.

Market Price

The price determined by the supply and demand.

Perfect competition

The degree of competition in which there are many sellers in a market and none is large enough to dictate the price of a product.

Monopolistic Competition

The degree of competition in which a large number of sellers produce very similar products that buyers nevertheless perceive as different.

Oligopoly

A degree of competition in which just a few sellers dominate the market.

Monopoly

A degree of competition in which only one seller controls the total supply of a product or service, and sets the price.

Socialism

An economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be more evenly distributed among the people.

Free market Economies

economic systems in which the market largely determines what goods and services get produced, who gets them, and how the economy grows

Command economies

economic systems in which the government largely decides what goods and services will be produced, who will get them, and how the economy will grow

Mixed Economies

Economic systems in which some allocation of resources is made by the market and some by the government

Gross Domestic Product

the total value of final goods and services produced in a country in a given year.

Inflation

a general rise in the prices of goods and services over time.

Disinflation

a situation in which price increases are slowing (the inflation rate is declining)

Deflation

a contraction of economic activity resulting in a decline of prices

Stagflation

a period of slow economic growth and high unemployment (stagnation) while prices rise (inflation)

Consumer Price Index (CPI)

Monthly Statistics that measure the pace of inflation or deflation.

Fiscal Policy

The federal government's efforts to keep the economy stable by increasing or decreasing taxes or government spending.

national debt

total sum of money a government owes.

Monetary policy

The management of the money supply and interest rates by the federal reserve bank.