Chapter 2 Key Terms

Front

Asset

Back

Something that an individual or business owns

Front

Business

Back

The aspects of making, selling, and providing products in exchange for money

Front

Business function

Back

Four forms of operational activities that play necessary roles in running a business, including finance, production, marketing, and management

Front

Business model

Back

A company’s plan for making a profit

Front

Demand

Back

The amount of goods that consumers want

Front

Economics

Back

The science of how individuals, businesses, and governments make decisions about satisfying unlimited wants with limited resources

Front

Liability

Back

Something that is owed by an individual or business

Front

Market research

Back

Entrepreneurs’ research into consumer preferences

Front

Need

Back

A product essential to survival

Front

Net worth

Back

The value of a business determined by assets minus liabilities