| A | B |
|---|
| sales income | income generated from the sale of goods and services |
| merchandise expenses | the owners cost to buy inventory for the store |
| labor expense | cost to pay workers' salaries |
| advertising expense | cost to tell customers about your store |
| utilities expense | good needed to run your business like electricity, gas, coal, and water |
| upkeep expenses | costs to maintain your building like: repairing the building, removal of snow, landscaping, painting, new roof and siding |
| capitalism | an economic system based on private ownership of businesses and resources that offer goods or services in a competitive market |
| gross income | total income before subtracting expenses |
| net profit | profit after all expenses have been paid |
| wholesale | the sale of goods in quantity usually for resale by a retail merchant |
| depression | period when business slows, prices and wages fall, and unemployment rises |
| recession | mild depression in which business slows and some worker lose their jobs |
| extending credit | when a merchant allows customers to pay for merchandise at some point in the future |
| profit and loss statement | accounting tool that records all business expenses and income for a given period of time |
| partnership | a partnership between two or more individuals who agree to pool talent and money as well as share in profits or losses |
| sole proprietorship | a business owned by a single person with total responsibility for profits and losses |
| economics | the study of the production, distribution, and consumption of goods and services |
| consumer | a person who uses goods or services |
| producer | a person who manufactures goods or services |
| retailer | a merchant who sells goods or services in small quantities directly to consumers |
