Business Basics
The study of how goods and services are produced, distributed, and consumed.
What is economics?
The possibility of financial gain or loss of personal injury
What is risk
A report developed to predict expenses and revenues
What is a Forecast
Making the product or service available when the consumer wants it.
What is time utility?
A plan for how available fund will be spent.
What is a budget?
The amount of money remaining from revenues after all expenses are paid?
The business is legally responsible for damages
Liable
A financial statement showing a company's assets, liabilities, and net worth
Balance sheet
Making the product or service available at an affordable price.
What is possession utility?
A system of deciding what is right or wrong in a reasoned and impartial manner.
What are ethics?
Making Decisions to use resources in ways that result in the greatest profit
Profit Motive
Involves preventing, reducing, or lessening the negative impacts of risk
Risk Management
Shows all revenues received and all expenses incurred over a specific period.
Income Statement
The product or service is available where the consumer wants it.
Place utility
High standards of rules and guidelines in business and personal life.
What are principles?
Occurs when a limited amount of resources are available
scarcity
When the physical characteristics of a product or service are improved
Form utility
The income distributed to investors.
What is Return on Investment
When the physical characteristics of a product of service are improved.
What is form utility?
Involves evaluating potential threats and preparing responses.
What is risk assessment?
Financing provided to start a company in return for owning part of it.
Venture Capital
The amount of satisfaction a person receives from consuming a product or service
Economic utility
An activity (like ticket sales) that produces money.
What is a revenue stream?
The amount of satisfaction a person receives from consuming a product or service.
What is economic utility.
A strategic approach to reducing business exposure to risk.
What is risk management?