| A | B |
|---|
| Business | Any commercial activity that seeks profit by providing goods and services to others in exchange for money. |
| Profit | The money left over after a business has paid the cost of providing its goods and services. |
| Profit Motive | The desire to make a profit, and profit is the reward for taking a risk and starting a business. |
| competition | The contest between businesses to win customers |
| Ways that companies find a competitive edge | By focusing on making high quality products, focusing on making products with no defects, offering great prices, offering outstanding customer service, or best of all, offering quality products with outstanding service at competitive prices. |
| Business Activities | Identify opportunities for products or services, evaluating the demand for products or services, otaining start up money and operating capital, manage the production of goods and/or services, marketing the goods and/or services, and keeping records to satisfy government requirements and improve processes. |
| market research | The act of gathering and analyzing information about the wants and needs, and preferences of consumers in a certain market. |
| What does market research provide? | information that can help a business identify opportunities, analyze demand, and respond to consumer demand for goods and services. |
| consumer | A person who uses goods or services |
| How do consumers affect businesses? | Consumers decide what kinds of goods and services they want and where they will buy them. Consumers reward companies by making the decision to purchase their products. If consumers choose not to purchase a business's products or services, that business usually fails. |
| How can businesses avoid failure? | They can modify their products, services, and business practices to satisfy consumers. |
| How do businesses affect consumers? | Businesses affect consumers by deciding what goods and services to produce to meet the needs and wants of consumers. They also affect consumers when they modify or discontinue products. This usually occurs because their is a decreasing demand. Businesses also provide jobs and tax revenue for the local community. |
