| A | B |
|---|
| Free enterprise system | encourages individuals to start and operate their own businesses in a competitive system, without government involvement. |
| patent | for an invention, you alone own the rights to that item or idea. |
| trademark | for a word, name, symbol, sound, or color that identifies a good or service and that cannot be used by anyone but the owner. |
| copyright | involves anything that is authored by an individual, such as writings, music, and artwork. |
| competition | the struggle for customers. |
| price competition | focuses on the sale price of a product. (All other things being equal, consumers will buy the products that are the lowest price.) |
| nonprice competition | businesses choose to compete on the basis of factors that are not related to price. Ex: quality of products, service, financing, business location, and reputation. |
| Supply | is the amount of goods producers are willing to make and sell. |
| Demand | refers to the consumer willingness and ability to buy products. When they meet = Equilibrium!!! |
| Domestic Business | a business that sells is products only in its own country |
| Global Business | sells its products in more than one country; Internet makes this easier |
| For-profit business | seeks to make a profit from its operations. |
| Nonprofit organization | functions like a business but uses the money it makes to fund the cause identified in its charter/contract. |
| Public sector | organizations that operate like a business but are not intended to earn a profit. Examples include: schools, public libraries, military agencies, Social Security benefits and Medicare. |
| Private sector | Businesses that are not associated with government agencies. |
| Industry | according to the U.S. Department of Labor, an industry consists of a group of establishments primarily engaged in producing or handling the same product or group of products or in rendering the same services. |
| NAICS | North American Industry Certification System: six digit hierarchical coding system used to classify all economic activity into 20 industry sectors. |
| SIC | Standard Industrial Classification: system used to collect data on businesses and analyze the U.S. economy. |
| Derived Demand | the demand for industrial goods based on the demand for consumer goods and services |
| Wholesalers | obtain goods from manufacturers and resell them to industrial users, other wholesalers and retailers. |
| Retailers | – buy goods from wholesalers or directly from manufacturers and resell them to the consumer. |
| Production/Procurement | process of creating, expanding, manufacturing or improving on goods/services. |
| Marketing | all activities from the time that a product leaves the producer until it reaches the final consumer. |
| Management | process of achieving company goals by effective use of resources (planning, organizing, and controlling) |
| Finance | involves money management (accounting) |
| accounting | is the diciplen that keeps track of a companys financial situation |
