SEM Chapter 2 (#1 - 18)

Amount of money remaining from revenues after all expenses are paid

• Economics

• Profit Motive

• Profit

• Risk

Making decisions to use resources in ways that result in the greatest profit

• Economics

• Profit Motive

• Profit

• Risk

Study of how goods and services are produced, distributed and consumed

• Economics

• Profit Motive

• Profit

• Risk

The possibility of financial gain or loss or personal injury

• Economics

• Profit Motive

• Profit

• Risk

Results from making the product or service available at an affordable price

• Economic Utility

• Form utility

• Place utility

• Possession utility

• Time utility

The amount of satisfaction a person receives from the consumption of a particular product or service

• Economic Utility

• Form utility

• Place utility

• Possession utility

• Time utility

Ensures that the product or service is available where the consumer wants it

• Economic Utility

• Form utility

• Place utility

• Possession utility

• Time utility

When the physical characteristics of a product or service are improved

• Economic Utility

• Form utility

• Place utility

• Possession utility

• Time utility

The result of making the product or service available when the consumer wants it

• Economic Utility

• Form utility

• Place utility

• Possession utility

• Time utility

If a loss can be prevented or the likelihood of its occurrence reduced

• Insurable risk

• Uninsurable risk.

• Uncontrollable risk

• Controllable Risk