Business Basics
Tangible items that are sold to customers
Goods
Refers to the possibility of loss when you invest in a business.
Risk
The ability of the business to offer products or services that meet or exceed market standards in relation to other businesses.
Competitiveness
The act of selecting among alternatives.
Choice
The most popular type of business structure.
Sole proprietorship
The item (or items) a business offers for sale.
Product
Revenue - Expenses =
Profit
Actual and potential customers whose needs and wants a business wishes to satisfy.
Target market
The development of something new.
Invention
This business structure requires legal advice and fees to establish/maintain.
Corporation
The organized effort of individuals to produce and sell products or services for a profit.
Business
Money received by a person for providing his or her labor, or a business from a return on its investments.
Income
A fixed amount of money paid on a regular basis, usually monthly, to a permanent employee of a business.
Salary
An improvement on something already established.
Innovation
A company whose shares are not traded over stock exchange.
A privately held company
The intangible parts of our economy, as opposed to goods.
Services
Costs of running a business (does not include the sale of items)
Operating costs
People who are part owners of a company because they own a number of shares.
Shareholders
A set of activities undertaken to improve existing products, create new products and improve production.
Research & Development (R&D)
A business structure(s) that has unlimited liability.
A sole proprietorship or a partnership
A product that is ready for customers to buy and use.
Finished/Final product
The value of all assets, minus the total of all liabilities.
Net worth
Activities undertaken by the business that combine the resources to create products.
Production
Someone who starts, operates and assumes the risk of a business.
Entrepreneur
A tax that does not change.
A flat tax