Business Concepts Flashcard

Front

What is the definition of the free enterprise system?

Back

A system where businesses are free to compete with minimal government intervention.

Front

What are elements of freedom of ownership?

Back

The ability to own property and resources

Front

How is competition defined in a business context?

Back

A rivalry among businesses to attract customers

Front

What must be considered with business risk?

Back

The potential for loss or failure

Front

How is profit defined?

Back

The total revenue minus total expenses

Front

What are the costs of being unsuccessful vs benefits of being successful?

Back

Loss of investment vs financial gain

Front

What is the relationship between supply and demand?

Back

Supply and demand influence each other

Front

What is the difference between surplus and shortage?

Back

Surplus is when supply exceeds demand; shortage is when demand exceeds supply.

Front

What is equilibrium in a market context?

Back

A state where supply equals demand

Front

What are business classifications?

Back

Categories based on the size and type of business