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Intro to Business Final -McCarty

STUDY
PLAY
GDP or Gross Domestic Product
total dollar value of all final goods and services produced in a country during one year
GDP per capita
way to measure economic growth; output per person
Business Cycles
recurring ups and downs of GDP
Prosperity
period in which most people who want to work are working, business produce goods and services in record numbers, wages are good and the rate of GDP growth increases.
Recession
period in which demand begins to decrease, businesses lower production, unemployment begins to rise and GDP growth begins to slow.
Depression
phase marked by a prolonged period of high unemployment, weak consumer sales, and business failures.
Recovery
phase in which unemployment begins to decrease, demand for goods and services increases, GDP begins to rise again.
Inflation
increase in the general level of prices.
price index
number that compares prices in one year with prices in some earlier base year
Deflation
decrease in the general level of prices. Usually occurs in period of recession and depression
absolute advantage
exists when a country can produce a good or service at a lower cost than other countries.
Comparative advantage
situation in which a country specialized in the production of a good or service at which it is relatively more efficient.
Imports
items bought from other countries
Exports
goods and services sold to other countries
Code of Ethics
set of rules for guiding the actions of employees or members of an organization
Patent
gives the inventor the sole right to make, use, or sell the item for 20 years
copyright
protects the creative work of authors, composers and artists
trademark
word, letter, or symbol linked with a specific company or product.
Sole proprietorship
business owned and ran by just one person
Partnership
business owned and controlled by two or more people
corporation
separate legal formed by documents filed with a state
Franchise
written contract granting permission to operate a business to sell products and services in a set way.
Entrepreneur
someone who takes a risk in starting a business to earn a profit
Business Plan
series of documents that serves as a blueprint for building a business
Executive Summary
section of a business plan that summarizes all the sections of the business plan
Company description
section of business plan that includes details about the business including it's age, history and form of ownership
Business Card
small card printed or engraves with a person's name and business information. Includes business name, address, phone number, logo, website
Company letterhead
heading that is printed at the top of a sheet of letter size paper, usually consisting of a company name, logo, address, web site address, telephone and fax number
Brochure
small booklet or pamphlet often containing promotional material and product information
Advertisement
a way to get your business exposed to potential customers; newspapers, magazines, commercials, billboards,