Business Basics Ch1 Test
goods
Items purchased to satisfy needs and wants
Competition
the contest among producers for the dollars of consumers
Profit
A financial gain, esp. the difference between the amount earned and the amount spent in buying, operating, or producing something
List the 5 essential steps of the decision making process:
1. Identify the situation 2. Identify possible courses of action 3. Determine the pros and cons 4. Make a decision 5. Evaluate you decision
consumer
A person who purchases goods and services
Services
Activities that are consumed at the same time they are produced
How do businesses affect communities?
Businesses produce the goods/services that consumers want/need. Businesses also affect communities in this process when they modify or discontinue products. Businesses provide communities with employment opportunities.
How do consumers affect businesses?
Consumers decide what goods/services they want and where they want to buy them. Consumers award companies by buying their products, and when a businesses products aren't being sold the business struggles. Consumers determine the route of decisions that businesses make to survive.
What is the difference between personal decision making and business decision making?
Personal decision making is a consumers decision in buying something that is simply to satisfy their individual wants/needs (buying same brand of orange juice, bike brands). Business decision making is based off of how a business wants to best use their resources to top others in competition. Businesses must make routine consistent decisions to keep running.
Market Research
The activity of gathering information about consumers' needs and preferences.
Wants and Needs
a need is something essential for survival eg. food. A want is something desirable but not essential to survival eg. coke.
Resources
all things used in producing/purchasing goods and services
Business
any activity that seeks to provide goods and services to others while operating at a profit
