Chapter 5
Order by
31 terms
Terms | Definitions |
|---|---|
 free enterprise system | An economic system in which people are free to operate their businesses as they see fit, with little government interference. |
| patent | a license that gives the inventor of a new product the exclusive right to sell it for a certain period of time |
| Trade secrets | Not patented, copyrighted, or trademarked - usually a "classified" formula, pattern, and design |
| trademark | A word, symbol, design, or combination of these that a business uses to identify itself or something it sells. |
| copyright | a document granting exclusive right to publish and sell literary or musical or artistic work |
| competition | The struggle between companies to attract new customers, keep existing ones, and take away customers from other companies. |
| Price competition | intense competition in which competitors cut the amount customers have to pay to gain business. |
| Nonprice competition | competition based on factors that are not related to price, such as product quality, service and financing, business location, and reputation. |
| monopoly | Exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices. |
| Profit | The money earned from conducting business after all costs and expenses have been paid. |
| Supply | The amount of goods producers are willing to make and sell. |
| Demand | Consumer willingness and ability to buy products. |
| Surplus | Supply exceeds demand |
| Shortage | Demand exceeds supply |
| Equilibrium | Supply equals demand |
| domestic business | A business that sells its products only in its own country. |
| global business | A business that sells its products to more than one country. |
| for-profit business | A business that seeks to make a profit from its operations. |
| nonprofit organization | An organization that can function like a business but uses the money it makes to fund the cause identified in its charter. |
| public sector | Local, state, and federal government agencies and services, such as public libraries and state universities. |
| private sector | Businesses not associated with government agencies. |
| industry | A group of establishments primarily engaged in producing or handling the same product or group of products or in rendering the same services. |
| Derived demand | The demand for industrial goods based on the demand for consumer goods and services. |
| Wholesalers | Channel of distribution that obtains goods from manufacturers and resells them to industrial users, other wholesalers, and retailers. |
| Retailers | Channel of distribution that buys goods from wholesalers or directly from manufacturers and resells them to the consumer. |
| Production | The process of creating, expanding, manufacturing, or improving on goods and services. |
| five "rights" of merchandising | the right goods at the right time in the right place at the right price in the right amount |
| SWOT analysis | A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy. |
| Management | The business function of planning, organizing, and controlling all available resources to achieve company goals. |
| Finance | A business function that involves money management. |
| Accounting | The discipline that keeps track of a company's financial situation. |
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