The Free Enterprise System
Price Competition
Focuses on the sale price of a product
Nonprice Competition
When businesses choose to compete on the basis of factors that are not related to price
Patent
When you alone own the rights to your item or idea
Domestic Business
A business that sells products only in its own country
Supply
Amount of goods producers are willing to make and sell
Private Sector
Businesses not associated with government agencies
Retailers
Buy goods from wholesalers or directly from manufacturers and resell them to the customer
Industry
Consists of a group of establishments primarily engaged in producing or handling the same product or group of products or in rendering the same services
Accounting
Discipline that keeps track of a company's financial situation
Free Enterprise System
Encourages individuals to start and operate their own businesses in a competitive system, without government involvement
Monopoly
Exclusive control over a product or the means of producing it
Finance
Function of business that involves money management
Nonprofit Organization
Functions like a business but uses the money it makes to fund the cause identified in its charter
Copyright
Involves anything that is authored by an individual, such as writings, music, and artwork
Profit
Money earned from conducting business after all costs and expenses have been paid
Wholesalers
Obtain goods from manufacturers and resell them to industrial users, other wholesalers, and retailers
Business Risk
Potentional for loss or failure
Management
Process of achieving company goals by effective use of resources through planning, organizing, and controlling
Demand
Refers to consumer willingness and ability to buy products
For-Profit Business
Seeks to make a profit from its operations
Global Business
Seels its products in more than one country
Competition
Struggle for customers
Trademark
A word, name, symbol, sound, or color that identifies a good or service that cannot be used by anyone but the owner
Public Sector
Government-financed agencies
Derived Demand
The industrial market is based on, or derived from, the demand for consumer goods and services
Production
The process of creating, expanding, manufacturing, or improving on goods and services