basic terms
goods
tangible, physical items or products that are produced, bought, and sold to satisfy customer needs
primary goal for all businesses
to earn profit
the USA is what economy
Mixed
Services
an intangible activity, expertise, or labor provided to a customer, rather than a physical product, to fulfill a need, solve a problem, or offer an experience
relationships between buyer and sellers important in business
it forms the foundation of all transcations and trust
what is a traditinol economy roles are commonly determined by
supply and demand
Revenue
is the total money a business earns from selling its products or services
why is innovation improtant in business
it keeps businesses competitive and relevant
command economy is also know as a
subsistence economy
COGS
the direct costs of producing the goods a company sells, including raw materials, direct labor, and manufacturing overhead, appearing on the income statement right after revenue to help calculate gross profit
design thinking processes
empathize,define,Ideate,prototype,test
communism aims for a society with
no classes, no money,and distribution on based on needs
Seller
any individual or entity that transfers ownership of goods, services, or property to a buyer in exchange for money or value
key feature of a sole proprietorship
One owner with full controland unlimited liabilty
what is a built in inflation cycle
worker demand higher wages to keep up with rising prices