| A | B |
|---|
| Sole proprietorship | Owned by one person |
| Partnership | Owned by two or more people. |
| Corporation | Owned by many people (stockholders), but treated by law as one person (can own property, pay taxes, make contracts, etc. |
| Franchise | Contractual agreement between the parent company and the business operator to sell a company's products or services in a specific geographic area |
| Purpose of business | to fulfill the needs & wants of the consumers by selling goods/services |
| Consumer | someone who uses goods or services. |
| Customer | who purchases goods/services. |
| Needs | things that are necessary for survival. |
| Wants | are not necessary for survival but add pleasure & comfort to our lives. |
| Products | are physical goods or services that can satisfy consumer needs. |
| Profit motive | the desire to make money. They see opportunities where they can benefit financially in the marketplace. |
| Accounting | a system of recording & reporting financial activity & transactions. |
| Management | Employees whose overall job is to make sure that the organization meets it goals & obilgation in every department or function of business. |
| Marketing | The process of satisfying the needs & wants of consumers through exchange. |
| Information Technology | The use of technology to share knowledge, facts, and data to others such as coworkers, customers, and suppliers. |
| Operations | is considered the "back office" and involves all the behind the scenes paperwork that must be finished in order for the transactions to be completed. |
| Human Resources | Manages the personnel relations within a company; helps develop the skills & knowledge necessary to be successful while on the job. |
| Goods | Items businesses sell that can be physically weighed or measured, such as iPods & CDs. |
| Services | Tasks that businesses perform or provide for customers |
| Multinational corporation | A company that does business & has business facilities in many countries |
| Profit-making businesses | motive is making a profit (earning more revenue than expenses) |
| Non-profit-making businesses | focuses on providing a service instead of making a profit |
| Service business | Provides services rather than goods. |
| Product business | sells goods to consumers & other businesses |
