| A | B |
|---|
| Profit | The amount of money remaining from revenues after all expenses are paid |
| economics | The study of how goods and services are produces, distributes, and consumed |
| risk | The possibility of financial gain or loss or personal injury |
| forecast | A report developed to predict the expenses to be incurred and revenues to be received |
| liable | The business is legally responsible for damages |
| risk management | Involves preventing, reducing, or lessening the negative impacts of risk |
| profit | Income that is distributes to investors |
| ethics | a system of deciding what is Right or wrong in a reasoned and impartial manner |
| economic utility | the amount of satisfaction a person receives from the consumption of a particular product or service |
| income statement | A statement that subtracts revenue from expenses |
| profit motive | making decisions to use resources in ways that result in the greatest profit |
| form utility | when a product is changed to improve it |
| time utility | when the customer gets the good or service when they want it |
| place utility | when the customer gets the product where they want it |
| possession utility | then the customer thinks the product is worth the money |
| Macroeconomics | The study of the economics of the entire society |
| microeconomics | The study of personal economics |
| speculative risk | When the outcome is not known |
| controllable risk | if a loss can be prevented or the likelihood of its\occurrence lessened |
| insurable risk | pure risk for which the chances of loss are predictable and the amount of the loss can be estimated. |
| Economic risk | due to the changes in the business environment |
| human risk | results from customer dishonesty,employee theft and employee incompetence |
| Natural risk | weather conditions, that cannot be avoided |
| risk insurance | pays for predictable losses |
| premium | the cost of insurance |
| risk retention | uninsurable risk that businesses assume the cost for |
| Character development | solid principles which are high standards |
