| A | B |
|---|
| Absolute advantage | ”occurs when one nation can produce an item with fewer resources or more efficiently than another nation can” |
| Annual report | ”report to stockholders containing a summary of the year’s operations and pertinent financial info. ” |
| Arbitration | ”settling differences by allowing a third party to hand down a decision that is final” |
| Assembly line | ”a manufacturing system in which products are assembled by moving them from one worker or machine to another” |
| Asset | ”something of value owned by a firm |
| Barter | ”an exchange without money of goods or services” |
| Budget | ”a financial plan that summarized income and expenditures over a period of time” |
| Capacity | ”the maximum number of units a firm can produce” |
| Collateral | ”something with monetary value pledged as security for a loan” |
| Cash flow | ”amount of money coming in and going out of a firm” |
| Corporation | ”a business managed on behalf of its owners/stockholders |
| Stock | ”shares in the ownership of a corporation” |
| Rent | ”return paid to those who supply the factor of production land” |
| Promotion | ”program designed to sell goods or services to the public” |
| Dumping | ”selling the same goods abroad for a lower price than at home |
| Earnings | ”profits” |
| Equilibrium price | ”price that balances the amount buyers want to buy with a the amount sellers want to sell” |
| Equity | ”ownership of a business” |
| Expenditure | ”money that is spent” |
| Gross domestic product | ”the market value of goods and services produced within a country during a given time” |
| Inventory | ”stock of goods held by a business” |
| Goods | ”physical products businesses produce” |
| Currency | ”paper money and coins issued by the federal government” |
| Dividend | ”a share of corporate profits paid to stockholders” |
