Entrepreneurship Chapter 1 Vocab
Terms in this set (30)
An individual who undertakes the creation, organization and ownership of a business.
A new business undertaking that involves risk.
A process of recognizing an opportunity, testing it in the market, and gathering resources necessary to go into business.
Acting like an entrepreneur or having an entrepreneurial mind-set.
The study of how people choose to allocate scarce resources to fulfill their unlimited wants.
free enterprise system
People have an important right to make economic choices, such as what to buy, to own property, and start a business.
Money left after all expenses of running a business have been deducted from the income.
The nature and degree of competition among businesses operating in the same industry. It affects price.
A market structure in which a particular commodity has only one seller who has control over supply and can exert nearly total control over prices.
A market structure in which there are just a few competing firms.
Tangible (or physical) products.
Intangible (nonphysical) products.
Basic requirement for survival, such as food and shelter.
Something that you do not have to have for survival, but you would like to have.
factors of production
The resources businesses use to produce the goods and services that people want, such as land, labor, capital and entrepreneurship.
What occurs when demand exceeds the supply.
The quantity of goods or services that consumers are willing and able to buy. According to the law of demand, as price goes up, the quantity demanded goes down.
Situations in which a change in price creates a change in demand.
Situations in which a change in price has very little effect on demand for products.
diminishing marginal utility
The concept that the price alone does not determine demand, for people won't keep buying a low-priced product indefinitely.
The amount of goods and services the producers are willing to provide.
The point at which consumers buy all of a product that is supplied, so there is neither a surplus nor a shortage.
Gross Domestic Product (GDP)
The total market values of goods and services produced by workers and capital within a nation during a given period.
A general pattern of expansion and contraction that the economy goes through.
An idea that has commercial value.
Specially designated areas of a community that provide tax benefits to new businesses locating there.
Needed to start a business, these may include capital, skilled labor, management expertise, legal and financial advice, facility, equipment, and customers.
new venture organization
The infrastructure of the business, the foundation that supports all of the products, processes, and services of the new business.
A business that has stopped operating with a loss to creditors.
A business that is operating under a new name or that has been discontinued on purpose.