Vocabulary Terms Unit 1 Flashcards
(14 cards)
Goods
Tangible items you can touch
Services
One time consumable benefits
Profit
The income or revenue a business pertains after paying all expenses associated with the operations of the business. (In the black)
Loss
When the expenses of the business exceeded the revenue generated by business operations. (In the red)
Liability
Being legally responsible for something.
Overhead
The cost of doing business before a product is even sold.
Cost
How much a company has to spend in order to produce a product or service.
Raw Materials
The basic material from which a product is made
Assets
Anything of value that the business owns
(Accounting) Liabilities
debts of the business
Owner’s equity
represents the owner’s investment in the business minus the withdrawals from the business plus the income (or minus the net loss) since the business began
accounting equation
Assets= liabilities + Owners equity
Direct channel of distribution:
When the seller delivers the product or service directly to customers
Indirect channels of distribution:
Multiple distribution partners distribute the goods and services from sellers to customers.
