Chapter 1: What is Entrepreneurship
discontinuance
a business that was purposely discontinued by an owner who wanted to start a new one
monopoly
a market structure in which a particularr commodity has only one seller who has control over supply and can exert nearly total control over prices
oligopoly
a market structure in which there are just a few competing firms
venture
a new business undertaking that involves risk
opprotunity
an idea that has commercial potential
entrepreneur
an individual who undertakes the creation, organization, and ownership of an innovative business with the potential for growth
enterprise zones
are specially desigunated areas of community that provide tax benefits to new businesses locating there and grants for new product development
need
basic requirement for survival
elastic demand
change in price creates a change in demand
inelastic demand
change in price has little change on demand
free enterprise system
choose what products to buy, to own private property, and can start a business
new venture organization
company
start-up resources
include the capital, skilled labor, management expertise, legal and financial advice, facility, equipment, and customers needed to start a business
services
intangible(non-physical) products
profit
money that is kept after all expenses of running a business have been deducted from the income
scarcity
occurs when demands exceeds supply
demand
quantity of goods or services that consumers are willing and able to buy
want
something that you do not have to have for survival but would like to have
business failure
stopped operating with a loss to creditors
goods
tangible(physical) products
supply
the amount of a good or service that producers are willing to provide
market structure
the nature or degree of competition among businesses operating in the same industry.
business cycle
the periodical random pattern of expansion and contraction that the economy goes through
equilibrium
the point at which consumers buy all of a product that is supplied
entrepreneurship
the process of recognizing or creating an opprotunity, testing it in the market, and gathering the resources necessary to go into business
factors of production
the resources businesses use to produce the goods and services that people want
economics
the study of how people choose to allocate scarce resources to fulfill their unlimited wants
GDP
the total market values of goods and services produced by a nation during a given period
diminishing marginal utility
will not buy more than they can reasonably use`
