Chapter 3 vocab Flashcards
Profit
The amount of money remaining from income after all expenses are paid.
Revenue stream
Makes decisions on how to use resources in ways that result in the greatest profit.
Economics
The study of how goods and services are produced, distributed, and consumed.
Economic impact
The effect produced (such as jobs created, or revenue generated) by decisions made by consumers and businesses.
Scarcity
When there is limited amount of resources needed to produce and distribute goods and services.
Economic utility
The amount of satisfaction a person receives from the consumption of a particular product or service.
Form utility
Improving the physical characteristics of a product or service.
Time utility
By using an online service such as Netflix, consumers can access a movie whenever they want to view it.
Place utility
Ensures that the product or service is available where the customer wants it.
Possession utility
Making the product or service available at an affordable price.
Return on investment
Calculates the business’s return as a percentage of the money invested.
Venture capital
Financing provided to start a company in return for owning part of the company.
Capital
A company’s wealth in the form of money or property, are two reasons that almost 50% of all new small businesses fail.
Budget
A detailed projection of financial performance for a specific time period (usually one year or less), is a planning tool.
Risk
The possibility of financial gain or loss or personal injury.
