| A | B |
|---|
| Command Economic System | An economy where supply and price are regulated by the government rather than market forces. |
| Communism | Economic and social system in which all (or nearly all) property and resources are collectively owned by a classless society and not by individual citizens |
| Economic System | An organized way in which a state or nation allocates its resources and apportions goods and services in the national community. |
| Market Economic System | Where price of goods and services is governed by the forces of demand and supply, and not by manipulation by cartels or government policies. |
| Private Enterprise | Basis of a free market capitalist system, it is a business unit established, owned, and operated by private individuals for profit, instead of by or for any government or its agencies |
| Socialism | An economic system in which goods and services are provided through a central system of cooperative and/or government ownership rather than through competition and a free market system. |
| Traditional Economic System | Economic system in which decisions are based on customs and centered on family |
| Cost of Goods | The price of the items that a business manufactures or purchases with the intention or resale. |
| Expenses | Money spent or cost incurred in an organization's efforts to generate revenue, representing the cost of doing business. |
| Income | the amount of money received over a period of time either as payment for work, goods, or services. |
| Operating Expenses | the cost of carrying out an organization's day-to-day activities, but not directly associated with production |
| Pofit Motive | Chance of generating a surplus of revenue over all costs the reason most people start and stay in a business. |
| Profit | The surplus remaining after total costs are deducted from total revenue |
| Business Risk | The possibility of a business financial loss or failure |
| Economic Risks | Risks that result from changes in overall business conditions |
| Guarantee | a formal promise that a product will be repaired free of charge if it breaks or fails within a particular period or that substandard work will be redone. |
| Human Risks | Risks caused by human errors as well as the unpredictability of customers, employees, or the work environment. |
| Natural Risks | Risks resulting from natural causes. |
| Pure Risks | The possibility of loss to a business without any possibility of gain. |
| Speculative Risks | Risking loss to make a profit |
| Competition | the process of trying to win or do better than others |
| Direct Competition | Market situation where two or more firms offer essentially the same good or service. |
| Indirect Competition | Competition among the suppliers of different types of products that satisfy the same needs |
| Monopoly | When a single firm is the sole producer of a product for which there are no close substitutes. |
| Nonprice Competition | Market situation in which competitors focus on extensive promotions to highlight the distinctive benefits or features of their products. |
| Oligopoly | Where few large firms producing a homogeneous or differentiated product dominate a market. |
| Perfect Competition | Where there are many sellers, homogenous or standardized products, firms are price takers, and there is free entry and exit. |
| Price Competition | Rivalry between suppliers based solely on price, usually for commodious or identical items |
| Regulated Monopolies | businesses that are the only available source of their product/service so they are heavily regulated by government. |
