Entrepreneurship Key Terms

business failure

a business that files bankruptcy and loses money for creditors, the people who lent them money, and their investors

discontinuance

a business that is operating under a new name or a business that has been purposely discontinued

venture

a business undertaking involving risk

enterprise

a company that is organized for commercial purposes

free enterprise system

an economic system in which people are free to operate their businesses as they see fit, with little government interference

opportunity

an idea that has commercial value

entrepreneur

an individual who undertakes the creation, organization, and ownership of a business

environment

elements affecting a business that are not controlled by the entrepreneur

services

intangible items that have monetary value and satisfy needs and wants

foundational skills

math, communication, and decision-making skills that entrepreneurs use regularly in setting up and running a business

profit

money that is left after all the expenses of running a business have been deducted from the income

start-up resources

resources an entrepreneur needs to have when starting a business, including capital, skilled labor, management expertise, legal and financial advice, a facility, equipment, and most imprtantly, customers

factors of production

resources of land, labor, capital, and entrepreneurship used to produce goods and services

enterprise zones

specially designated areas of a community that provide tax benefits to new businesses locating there and grants for new product development

competition

striving for the same customer or market

investment

the amount of money one puts into a business as capital

demand

the amount or quantity of goods or services that consumers are willing and able to buy

economics

the branch of social science that deals with the production and distribution and consumption of goods and services and their management

capital

the buildings, equipment, tools, and other goods needed to produce a product, or the money used to purchase these items

entrepreneurship

the process of getting into and operating one's own business

elastic

when a small change in price produces a large change in demand

inelastic

when a small change in price produces little or no effect on the quantity demanded

scarcity

when wants are greater than resources