Business Characteristics ICEV

process of recording, classifying, summarizing and reporting the financial position of a business

Accounting

Assets = Liabilities + Owner's Equity

Accounting Equation

items of value owned by a business

Assets

financial statement which reports totals in asset, liability and owner's equity accounts

Balance Sheet

process of effectively working together in group settings

Cooperation

department responsible for distributing goods and services in the most efficient and cost-effective manner

Distribution

department responsible for managing the use of company funds, obtaining needed funds and creating a financial plan

Finance

department responsible for maintaining the employment process, training and developing staff and following laws and proper procedures

Human Resources

financial statement which reports net income or net loss of a company

Income Statement

businesses which move finished goods from one business to another by buying, storing and reselling goods; often referred to as "middlemen"

Intermediaries

debts or obligations of a business

Liabilities

process of reaching a company's goals and objectives by utilizing its resources; department responsible for the management process

Management

businesses which change raw or processed goods into finished goods

Manufacturers

department responsible for creating products which meet consumer wants and needs, guiding products through the product life cycle and understanding consumers through marketing research

Marketing

four interrelated marketing strategies used to meet consumer needs; consist of product, price, promotion and place

Marketing Mix

pyramid expressing the needs of people in levels: basic needs, safety, belongingness, love, esteem and self-actualization

Maslow's Hierarchy of Needs

businesses which provide goods and services to businesses and individuals, but operate on donations, volunteers and philanthropists rather than profit

Non-profit Organizations

businesses which change raw goods into a more finished form, known as processed goods

Processors

businesses which develop products for distribution from raw goods

Producers

marketing theory stating the stages experienced by products and services from their introduction to their decline; consists of four stages: introduction, growth, maturity, decline

Product Life Cycle

department responsible for producing goods and services in the most efficient and cost-effective manner

Production

materials derived from natural resources

Raw Goods

businesses which provide services to consumers and other businesses

Service Firms