30 terms

ENT-Ch. 1 Terms

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Entrepreneur
An individual who undertakes the creation , organization, and ownership of a business.
Venture
A new business undertaking that involves risk
Entrepreneurship
The process of recognizing an opportunity, testing it in the market, and gathering resources necessary to go into business.
Entrepreneurial
Acting like an entrepreneur or having an entrepreneurial mind-set.
Economics
The study of how people allocate scarce resources to fulfill their unlimited wants.
Free enterprise system
An economic system in which people have important rights:to make economic choices of what products to buy, to own private property, and to choose to start a business and compete with other businesses.
Profit
Money that is left over after the expenses of running a business have been deducted from the income.
Market structure
The nature and degree of competition among businesses operating in the same industry: market structure affects market price.
Monopoly
A market structure in which a particular commodity has only one seller.
Oligopoly
A market structure in which there are just a few competing firms.
Goods
Tangible (or physical) products of our economic system that satisfy consumers' wants and needs.
Services
Intangible (nonphysical) products that satisfy consumers' wants and needs.
Need
A basic requirement for survival.
Want
Something that you do not have to have for survival, but would like to have.
Factors of production
The resources businesses use to produce the goods and services that people want.
Scarcity
The difference betweendemand and supply: limited resources.
Demand
The quantity of goods or services that consumers are willing and able to buy at various prices.
Elastic demand
Situations in which a change in price creates a change in demand.
Inelastic demand
Situations in which a change in price has little or no effect on demand for products.
Diminishing marginal utility
The effect or law thst establishes that price alone does not determine demand, and other dactors, such as income, taste, and the amount of product already owned, play a role as well.
Supply
The amount of goods or services that producers are willing to provide.
Equilibrium
The point at which consumers buy all of a product that is supplied.
Gross Domestic Product(GDP)
The total market value of all goods and services produced by workers and capital within a nation during a given period.
Business cycle
The general pattern of expansion and contraction that the economy goes through.
Enterprise zones
are specially desgnated aeas of a community that provide tax benefits to new businesses locating there.
Opportunity
an idea that has commercial value.
Start-up resources
include capital, skilled labor, management enterprise, legal and financial advice, facility, equipment, and customers needed to start a business.
New venture organization
the infrastructure of the business.
Business failure
is a business that has stopped operating with a loss to creditors.
Discontinuance
may be a business that is operating under a new name.
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