| A | B |
|---|
| Cost of goods | The amount of money a business pays for the products it sells or for the raw materials from which it produces goods to sell; the amount of money a business pays for the products (or for any part of the products) it sells |
| Creditors | Individuals or businesses to whom a business owes money or from whom it wants to borrow money |
| Demand | The quantity of a good or service that buyers are ready to buy at a given price at a particular time |
| Economy | The system in which people make and spend their incomes |
| Efficiency | Accomplishing a task with a minimum expenditure of time and effort |
| Expenses | The money that a business spends |
| Gross profit | Money left after the cost-of-goods expense is subtracted from total income |
| Income | The money received by resource owners and by producers for supplying goods and services to consumers |
| Net profit | Money left after the cost-of-goods expense and the operating expense are each subtracted from the total income |
| Operating expenses | All of the expenses involved in running a business |
| Pricing | A marketing function that involves determining and adjusting prices to maximize return and meet customers’ perceptions of value |
| Private enterprise system | An economic system in which individuals and groups |
| Profit | Monetary reward a business owner receives for taking the risk involved in investing in a business |
| Profit motive | The desire to make a profit |
| Resources | Items that are used to accomplish another activity |
| Risk | The possibility of loss or failure |
| Suppliers | Vendors; businesses from which other businesses buy goods or services |
| Taxes | Monies that individuals or businesses must pay to the government |
