General Terms
Any organization or activity that provides goods and services in an effort to earn a profit.
Business
The study of the choices that people, companies, and governments make in allocating society’s resources.
Economics
A measurement of the value of one nation’s currency relative to the currency of other nations.
Exchange rates
A form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.
corporation
Individuals who invest in start-up companies with high growth potential in exchange for a share of ownership.
Angel investors
People who risk their time, money, and other resources to start and manage a business.
Entrepreneurs
Government efforts to influence the economy through taxation and spending.
Fiscal Policy
Buying products domestically that have been produced or grown in foreign nations.
Importing
A voluntary agreement under which two or more people act as co-owners of a business for profit.
A voluntary agreement under which two or more people act as co-owners of a business for profit.
This is the process of funding ventures by raising money from a large number of investors via the Internet.
Crowdfunding
Business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain.
Nonprofits
Federal Reserve decisions that shape the economy by influencing interest rates and the supply of money.
Monetary Policy
Taxes levied against imports.
Tariffs
A form of business ownership with a single owner who usually actively manages the company.
sole proprietorship
Companies that invest in start-up businesses with high growth potential in exchange for a share of ownership.
Venture capital firms
The marketing, buying, selling, and servicing of products over a network (usually the Internet).
e-commerce
The price associated with the point at which the quantity demanded of a product equals the quantity supplied.
equilibrium price
The opportunity of giving up the second-best choice when making a decision.
Opportunity Cost
A corporate restructuring that occurs when two formerly independent business entities combine to form a new organization.
merger
A financial arrangement between a firm and a bank in which the bank pre-approves credit up to a specified limit, provided that the firm maintains an acceptable credit rating.
line of credit
The application of right and wrong, good and bad, in a business setting.
Business Ethics
An independent agency created by Congress to maintain stability and public confidence in the nation’s financial system, primarily by insuring bank deposits.
Federal Deposit Insurance Corporation (FDIC)
The treaty among the United States, Mexico, and Canada that eliminated trade barriers and investment restrictions over a 15-year period starting in 1994.
North American Free Trade Agreement (NAFTA)
A form of business ownership that offers both limited liability to its owners and flexible tax treatment.
limited liability company (LLC)
The part of a firm’s net income it reinvests.
retained earnings