| A | B |
|---|
| entrepreneur | An individual who undertakes the creation, organization, and ownership of a business |
| discontinuance | A business that is operating under a new name, or a business the owner has purposely discontinued to start a new one |
| entrepreneurship | The process of recognizing an opportunity, testing it in the market, and gathering resources necessary to go into business |
| entrepreneurial | Acting like an entrepreneur or having an entrepreneurial mindset |
| economics | The study of how people choose to allocate scarce resources to fulfill their unlimited wants |
| free enterprise system | People have an important right to make economic choices, including what products to buy, to own private property, and to start a business and compete with other businesses |
| profit | Money that is left after all expenses of running a business have been deducted from the income |
| market structure | Refers to the nature and degree of competition among businesses operating in the same industry |
| monopoly | Market structure in which a particular commodity has only one seller who has control over supply and can exert nearly total control over prices |
| oligopoly | Market structure in which there are just a few competing firms |
| goods | Tangible (or physical) products |
| services | Intangible (nonphysical) products |
| need | Basic requirement for survival, such as food and shelter |
| want | Something that you do not have to have for survival, but would like to have |
| factors of production | Resources businesses use to produce the goods and services that people want |
| scarcity | Occurs when demand exceeds supply |
| demand | Quantity of goods or services that consumers are willing and able to buy |
| elastic demand | Refers to situations in which a change in price creates a change in demand |
| inelastic demand | Refers to situations in which a change in price has very little effect on demand for products |
| diminishing marginal utility | Law that says people will not buy more of a product than they can reasonably use, even when the price is low |
| supply | The amount of a good or service that producers are willing to provide |
| equilibrium | The point at which consumers buy all of a product that is supplied |
| Gross Domestic Product | Total market values of goods and services produced by workers and capital within a nation during a given period |
| business cycle | The general pattern of expansion and contraction that the economy goes through |
| enterprise zones | Specially designated areas of a community that provide tax benefits to new businesses locating there. They also provide grants for new product development |
| opportunity | An idea that has commercial value |
| start-up resources | Capital, skilled labor, management expertise, legal and financial advice, facility, equipment, and customers needed to start a business |
| new venture organization | Infrastructure of the business that supports all of the products, processes, and services of the new business |
| business failure | A business that has stopped operating with a loss to creditors |
| venture | A new business undertaking that involves risk |
