BE 2.05 Vocab Review

What word best describes: A risk-response strategy that involves choosing not to do something that is considered risky

• Avoidance

• Business Risk

• Competition

• Cost of goods

What word best describes: The possibility of loss (failure) or gain (success) inherent in conducting business.

• Business Risk

• Competition

• Cost of goods

• Direct Competition

What word best describes: The amount of money a business pays for the products it sells or for the raw materials from which it produces goods to sell; the amount of money a business pays for the products (or for any part of the products) it sells.

• Costs of Goods

• Direct Competition

• Economic Risks

• Expenses

What word best describes: Rivalry between or among businesses that offer similar types of goods or services 

• Direct Competition

• Economic Risks

• Expenses

• Gross Profit

What word best describes: The possibility of loss or failure that occurs as a result of the economy

• Economic risks

• Expenses

• Gross Profit

• Human Risks

What word best describes: The money that a business spends 

• Expenses

• Gross Profit

• Human Risks

• Income

What word best describes: Money left after the cost-of-goods expense is subtracted from total income

• Gross Profit

• Human Risks

• Income

• Indirect Competition

What word best describes: The possibility of loss or failure from human error

• Human Risks

• Income

• Indirect Competition

• Market Structure

What word best describes: The money received by resource owners and by producers for supplying goods and services to customers

• Income

• Indirect Competition

• Market Structure

• Monopoly

What word best describes: Rivalry between or among businesses that offer dissimilar goods or services

• Indirect Competition

• Market Structure

• Monopoly

• Natural Risks