| A | B |
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| entrepreneur | an individual who undertakes the creation, organization, and ownership of a business |
| venture | a business undertaking involving risk |
| entrepreneurship | the process of getting into and operating one's own business |
| economics | the study of the decisions or choices that go into making, distributing, and consuming products |
| free enterprise system | economic system in which people have the right to make economic choices of what products to buy, whether or not to own private property or to start a business and compete with other businesses; also called capitalism or a market economy |
| profit | money that is left after all the expenses of running a business have been deducted from the income |
| services | intangible (or conceptual) products that our economic system produces to satisfy our wants |
| factors of production | the resources that businesses use to produce the goods and services that people want |
| scarcity | when wants are greater than resources |
| demand | the amount or quantity of goods or services that consumers are willing and able to buy |
| elastic | term to describe a product for which a small change in price causes a significant change in the quantity demanded |
| inelastic | if a change in price has little or no effect on the quantity demanded, we say that demand for it is |
| diminishing marginal utility | the principle establishing that price alone does not determine demand |
| equilibrium | the point at which consumers buy all of a proouct that is supplied, leaving neither a surplus nor a shortage |
| environment | elements affecting a business that are not controlled by the entrepreneur |
| enterprise zones | specially designed areas of a community that provide tax benefits to a new business locating there and grants for new product development |
| opportunity | an idea that has commercial value |
| start-up resources | resources an entrepreneur needs to have when starting a business, including capital, skilled labor, management expertise, legal and financial advice, a facility, equipment, and most importantly, customers |
| new venture organization | the shell that surrounds all the products, processes, and services that are part of the new business |
| business failure | a business that files Chapter 7 bankruptcy and loses money for creditors, the people who lent them money, and their investors |
| discontinuance | a business that is operating under a new name or a business that has been purposely discontinued to start a new one |
