| A | B |
|---|
| capital | money invested in business: also, property and equipment used to produce goods or services |
| capitalism | an economic system based on private ownership of the means of production |
| command economy | an economic system in which the government controls a nation's economy |
| common stock | shares in a corporation that do not earn a fixed dividend but give shareholders a voice in managing the company |
| conglomerate | a large company formed by the merger of businesses that produce, supply, or sell a number of unrelated goods and services |
| copyright | an exclusive right, granted by law, to publish or sell a written, musical, or art work for a certain number of years |
| corporation | a business organization chartered by a state government and given power to conduct business, sell stock, and receive protection of state laws |
| dividend | a profit paid to coporate stockholders |
| econonmies of scale | a situation in which goods can be produced more efficiently and cheaply by larger companies |
| entrepreneur | a business owner |
| factors of production | the four resources, or means, of production-land, capital, labor, and management |
| free competition | a system in which business owners compete among themselves for customers |
| free market | an exchange between buyers and sellers who are free to choose |
| free-enterprise system | an economic system in whcih people are free to oprtate their businesses as they see fit |
| gross income | the total amount of money a company receives from the sale of its goods and services |
| invest | to put money into businesses or valuable articles in hopes of making a profit |
| labor | human effort used to make goods and services |
| law of demand | an economic rule that states that buyers will demand more products when they can buy them at lower prices and fewer products whent hey must buy them at higher prices |
| law of supply | an econmic rule that states that businesses will provide more products when they can sell them at higher prices and fewer products when they must sell them at lower prices |
| merger | a combination of two or more companies into one company |
| monopoly | a situation in which one company controls all production of a good or service |
| net income | the money a company has left over after all its costs have been paid |
| nonprofit organization | a business organization that provides goods and services without seeking to earn a profit |
| partnership | a business organization in which two or more persons share reponsiblities, costs, profits, and losses |
| patent | an exclusive right given to a person to make and sell an invention for a certain number of years |
| preferred stock | shares in a corporation that earn a fixed dividend but do not give shareholders a voice in managing the company |
| productivity | the amount of work produced by a worker in an hour |
| profit motive | the desire to make money from a business or investment |
| public utility | a legal monopoly that provides essential services to the public |
| rent | a payment for the use of land or other property belonging to another person |
| scarcity | the problem of limited resources |
| sole proprietorship | a business organziation owned by one person |
| standard of living | the well being of a nation's population, based on the amount of goods and services the population can afford |
| stock | a share of owndership in a corporation |
| stockholder | a person who owns corporate stock |
| trust | a form of business organization in which several compnaies create a board of trustees that ensures the companies no longer compete with one another |
