Core Concepts Flashcards
(17 cards)
What is a Business?
An organization that provides goods or services to earn a profit.
Profit
The money left over after expenses are subtracted from revenue.
Revenue
Total amount of money a company earns from selling goods/services.
Expenses
The costs required to run the business (e.g., salaries, rent, materials).
Entrepreneur
Someone who takes the risk to start and run a business.
Sole Proprietorship
A business owned and operated by one person; simplest structure.
Partnership
A business owned by two or more individuals who share profits and liabilities.
Corporation
A legal entity separate from its owners; offers limited liability protection.
Limited Liability Company (LLC)
Combines benefits of corporations (limited liability) and partnerships (tax flexibility).
Capitalism
An economic system where businesses are privately owned and operate for profit.
Socialism
An economic system where the government controls major industries, aiming for equal wealth distribution.
Mixed Economy
Combines elements of both capitalism and socialism (like the U.S.).
Supply and Demand
Economic principle where price is determined by the amount of product (supply) and the desire for it (demand).
Target Market
A specific group of consumers a company aims to serve.
Competitive Advantage
What sets a business apart and makes it more attractive to customers.
Business Ethics
Moral principles that guide the way a business behaves.
Corporate Social Responsibility (CSR)
A company’s duty to contribute positively to society and the environment.
