Chapter 1 Characteristics of Business

Flashcard maker : Lily Taylor
Business
An organization that produces a good or service for profit
Production
Making a product or providing a service
Marketing
The activities between a business and its customers
Finance
All of the money matters involved in running a business
Industrial Business
A business that produces goods and services for other businesses
Commercial Business
Firms that engage in marketing, finance, and furnishing services to consumers
Service Business
A business that uses primarily labor to produce a mostly intangible product to satisfy a need
Industry
All businesses within a category doing similar work
Innovation
Something developed by a business that is entirely new
Global Competition
The ability of businesses from one country to compete with businesses from another
Effectiveness
Making the right decisions about what products or services to offer customers
Efficiency
Producing products or services quickly, at low cost, and without wasting time or materials
Domestic Goods
Products made by firms within the United States
Foreign Goods
Products made by firms in other countries
Output
The quantity produced in a given amount of time
Productivity
Producing the largest amount in the least amount of time
Downsize
Reducing the amount and variety of goods and services produced and the number of employees needed to produce them
Empowerment
Letting workers participate in determining how to perform their work and how to improve work processes
Gross Domestic Product
The total Market Value of all goods and services produced in a country in a year
Underground Economy
Income that escapes being recorded in the GDP
Entrepreneur
Someone who starts, manages and owns a business
Franchise
A legal agreement in which investors purchase the right to sell a company’s product or service under the company’s name or trademark
Franchisor
The parent company of a franchise agreement
Franchisee
The distributor of a franchised product
Intrapreneur
An employee who is given funds and freedom to create a special unit or department within a company to develop a new product, process, or service

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