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The way a country makes its earning and spending decisions, structured around resources, markets, and participants.
economic system
The monetary reward for taking a risk and investing in a business, calculated as Income minus Expenses.
profit
One of the two main ways a business can increase its profit, other than increasing sales.
decress expenses
This is the possibility of loss (failure) or gain (success) for a business.
buissnes risk
This type of competition occurs between businesses that offer similar types of goods or services.
direct competition
This type of economic system, often called a subsistence system, is based entirely on traditions passed down through the generations.
trditional economy
This is the money left after the Cost of Goods is subtracted from income.
gross profit
The economy, demand, and chance are all examples of these types of factors that affect a company's profit.
external factors
Pure risks have two possibilities: loss or no loss, while this type of risk has the possibility of loss, no change, or gain.
speculative risk
Competing by using prices to attract customer dollars, often utilizing tools like rebates or price matching.
price competition
The three basic economic questions are: What will be produced, How will products be produced, and this.
hwo products will be allocated
This calculation determines a business's final success: Gross Profit minus Operating Expenses.
net profit
Expenses and Pricing are examples of these factors, which a business can more directly control to impact profit.
internal factors
This way to handle risk involves purchasing insurance to cover potential losses.
transferring
Exceptional quality, trained personnel, and outstanding customer service are all examples of this type of competing.
nonprice competition
China, North Korea, and the former Soviet Union are historical or current examples of this command system characterized by central planning
communism
This term refers to the raw materials purchased to produce products or finished products purchased for resale.
cost of goods
Profit provides general benefits to society, including providing wider employment opportunities and creating this general positive state
Stronger Economy or Prosperity
A safety precaution like installing protective netting at a construction site is an example of dealing with risk through
hazard
The four main types of market structures are Perfect Competition, Monopolistic Competition, Oligopoly, and this structure.
Monopoly
The primary problem in this economic system is that its high taxes are required to fund extensive government benefits like free medical care and education.
Socialist Economy or a Welfare State
In a private enterprise system, profit is considered the monetary reward for doing this.
aking a Risk or Investing in a Business
Besides a stronger economy and better wages, profit also helps satisfy this essential need of business owners.
motivation or satisfaction
Avoiding, Preventing/Controlling, Transferring, and Retaining are the four main ways to handle risk; Hazard, Operational, Strategic, and Financial are the four main this.
Classifications of Business Risk
This 1936 piece of government legislation, which strengthened the Clayton Act, was passed to prohibit price discrimination and other predatory pricing.
Robinson-Patman Act