Ch1 Flashcards
(56 cards)
business
An organization that seeks to earn profits by providing goods and services.
profit
What remains (if anything) after a business’s expenses are subtracted from its sales revenues.
not-for-profit organization
An organization that provides goods and services to customers, but does not seek to make a profit while doing so.
economic system
The way in which a nation allocates its resources among its citizens.
factors of production
The resources used to produce goods and services: labour, capital, entrepreneurs, and natural resources.
labour
The mental and physical training and talents of people; sometimes called human resources.
capital
The funds needed to operate an enterprise.
entrepreneur
An individual who organizes and manages labour, capital, and natural resources to produce goods and services to earn a profit, but who also runs the risk of failure.
natural resources
Items used in the production of goods and services in their natural state, including land, water, mineral deposits, and trees.
information resources
Information such as market forecasts, economic data, and specialized knowledge of employees that is useful to a business and that helps it achieve its goals.
command economy
An economic system in which government controls all or most factors of production and makes all or most production decisions.
market economy
An economic system in which individuals control all or most factors of production and make all or most production decisions.
communism
A type of command economy in which the government owns and operates all industries.
socialism
A kind of command economy in which the government owns and operates the main industries, while individuals own and operate less crucial industries.
market
An exchange process between buyers and sellers of a particular good or service.
input market
Firms buy resources that they need in the production of goods and services.
Which country was ranked as the world’s top country in which to do business by Forbes in 2011?
Canada
Who is Mike Miltimore?
His family owns Lee’s Music and he is the creator of Riversong Guitars
output market
Firms supply goods and services in response to demand on the part of consumers.
capitalism
An economic system in which markets decide what, when, and for whom to produce.
mixed market economy
An economic system with elements of both a command economy and a market economy; in practice, typical of most nations’ economies.
privatization
The transfer of activities from the government to the private sector.
nationalization
The transfer of activities from private firms to the government.
deregulation
A reduction in the number of laws affecting business activity.
