10 terms

Business

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Price Sensitivity
is the degree to which the price of a product affects consumers' purchasing behaviors. In economics, price sensitivity is commonly measured using the price elasticity of demand. For example, some consumers are not willing to pay even a few extra cents per gallon for gasoline, especially if a lower-priced station is nearby.

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Scale
the capability of a system, network, or process to handle a growing amount of work or its potential to be enlarged in order to accommodate that growth.

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Distribution
in economics refers to the way total output, income, or wealth is distributed among individuals or among the factors of production (such as labor, land, and capital).

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Cost
the value of money that has been used up to produce something, and hence is not available for use anymore.

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Brand
a set of marketing and communication methods that help to distinguish a company from competitors and create a lasting impression in the minds of customers.

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Improving Returns
A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ROI measures the amount of return on an investment relative to the investment's cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio.

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Porters 5 Forces
a framework that attempts to analyze the level of competition within an industry and business strategy development. The forces include Threat of new entrants, Threat of substitutes, Bargaining power of buyers, Bargaining power of suppliers, Industry rivalry.

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Decision Trees
a decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility. It is one way to display an algorithm.

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Diminishing Returns
the decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.

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Double Entry Accounting
in accounting, is a system of bookkeeping so named because every entry to an account requires a corresponding and opposite entry to a different account. For instance, recording earnings of $100 would require making two entries: a debit entry of $100 to an account called "Cash" and a credit entry to an account called "Revenue."

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