Enterprise Final Exam

opportunity cost

the most desirable alternative given up as the result of a decision

Scarcity

Limited quantities of resources to meet unlimited wants

Added value

The increase in worth of a product or service as a result of a particular activity.

business plan

a formal written document that describes the nature of a business and how it will operate

Business objectives

The aims or targets that a business works towards.

Unique selling point

Any aspect of or characteristic of a product that differentiates it from the competition. Firms will often want to stress this in their marketing.

Branding

The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality or effectiveness)

Target Market

a set of buyers sharing common needs or characteristics that the company decides to serve

market research

The activity of gathering information about consumers' needs and preferences.

cost-plus pricing

adding a standard markup to the cost of the product

Competitive pricing

occurs when producers sell products at lower prices to lure customers away from rival producers, while still making a profit

penetration pricing

setting a low initial price on a new product to appeal immediately to the mass market

promotional pricing

temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales

dynamic pricing

adjusting prices continually to meet the characteristics and needs of individual customers and situations

Cash inflows

income from your job, investments, and other sources

Cash outflows

expenses, or items for which you must spend money

Net cash flow

The receipts of a business minus its payments

profit

The financial gain made in a transaction

revenue

incoming money

Costs

An amount that must be paid or spent to buy or obtain something. The effort, loss or sacrifice necessary to achieve or obtain something.