| Term | Definition |
|---|
| balance sheet | financial statement summarizing a firm's assets liabilities, and net worth |
| capacity | the maximum number of units a firm can produce |
| capital | factor of production used to produce goods or services |
| cash flow | the amount of money coming and going out of a firm |
| demand | a consumer's willingness and ability to buy a product or service |
| earnings | profits |
| economies of scale | decrease in the unit cost of a product or service as a result of large-scale production |
| expenditure | money that is spent |
| income statement | summary of a firm's revenue, costs and taxes over a period of time |
| inventory | stock of goods held by business; surplus |
| marketing | business activities that takes place b/t production and consumption |
| price | the money value of goods or services |
| profit | difference b/t a firm's total revenues and its total costs |
| research and development | activity directed towards developing new products and processes |
| unit cost | the cost of producing an item |
| capacity utilization | production level compared to capacity |
| total capacity | max numbers of product that can be produced |
| price-fixing | agreement amongst competitors as to what a price should be for a given product (illegal) |
| depreciation | the cost of replacing worn-out equipment |
| capital investment | the cost of expanding capital |
| retained earnings | the accumulation of earnings/profit over a given time |
| unit market share | a company's percentage of the total sales of an industry for a certain period |
| gross margin | sales less production costs |
| product differentiation | process of creating uniqueness in a product |
Combine with other sets
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