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Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
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A Business
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A decision-
making organization using inputs &
processes to provide outputs for customers or consumer.
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Goods
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Merchandise
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Services
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Intangible products provided by business.ex: Doctor's visit = better health
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Wants
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Desires of people.
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Needs
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Necessities for survival.
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Consumer
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Uses the product
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Customer
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Buys the product
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Consumer Goods
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Products sold to general public.
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Capital Goods
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Products sold to other businesses.
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Value-Added
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The difference between the value of inputs (usually the cost of production) and the value of outputs (the product as sold to customers).
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Opportunity Costs
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The best alternative that is passed over when a decision is made.
The choice you didn't make. |
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Profit
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A financial gain
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Revenue
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Income of a substantial nature.
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Capital
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A valuable resource of a particular kind
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Advantages of Specialization
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-Yields very clear task assignments, consistent with and individual’s training.
-Individuals within a department can easily build on one another’s knowledge, training, and experience. -Takes advantage of employee technical quality. -Able to produce much more of a good (or service) at a higher quality by himself/herself rather than many skilled laborers attempting to do the same thing. |
