| A | B |
|---|
| Free enterprise | referred to as private enterprise |
| Freedom of ownership | the ability to choose a house, car, job or business |
| Competition | a rivalry between 2 or more businesses |
| Direct competiton | 2 or more companies that utilize the same type of business format |
| Indirect competition | 2 or more companies that employ different types of business formats to sell similar goods |
| Price competition | focuses on the selling price of a product |
| Non-price competition | based on factors that are not related to price |
| Monopolies | when one company has exclusive control over a product or the means of producing it |
| Risk | the potential for loss or failure |
| Profit | the money earned from conducting a business after all costs and expenses have been paid |
