2.05 Key Terms
Across
- 2. A monopoly that the government allows to exist legally under controlled conditions.
- 5. Monetary reward a business owner receives for taking the risk involved in investing in a business; income left once all expenses are paid (income-expense=profit).
- 7. A market structure in which there are many businesses selling a lot of identical products for about the same price to many buyers; also known as pure competition.
- 12. The possibility of loss or failure from human error
- 14. The desire to make a profit, which moves people to invest in business.
- 19. A risk-response strategy that involves trying to reduce the chance of loss or severity of loss.
- 20. The possibility of loss or failure from nature.
- 22. All the expenses involved in running a business
- 24. The possibility of loss (failure) or gain (success) inherent in conducting business.
- 25. The possibility of loss or failure that occurs as a result of the economy.
- 27. The money received by resource owners and by producers for supplying goods and services to customers.
- 28. A risk-response strategy that involves assuming responsibility for the risk rather than transferring it.
Down
- 1. Chances of loss that carry with them the possibility of loss or no loss.
- 3. A market structure in which there are relatively few sellers, and industry leaders usually determine prices
- 4. Chances of loss that may result in loss, no change, or gain.
- 6. A type of rivalry between or among businesses that focuses on the use of price to attract scarce customer dollars
- 8. The type of market, or environment, in which businesses operate.
- 9. Rivalry between or among businesses that offer dissimilar goods or services.
- 10. A risk-response strategy that involves choosing not to do something that is considered risky.
- 11. A risk-response strategy that involves moving the impact of a risk to someone or something else.
- 13. A type of rivalry between or among businesses that involves factors other than price.
- 15. Money left after the cost-of-goods expense is subtracted from total income (income from sales-cost of goods=gross profit).
- 16. Rivalry between or among businesses that offer similar types of goods or services.
- 17. Money left after the cost-of-goods expense and the operating expense are each subtracted from the total income (gross profit-operating expense=net profit)
- 18. A market structure in which there are many businesses selling a lot of identical products for about the same price to many buyers; also known as pure competition
- 21. The money that a business spends.
- 23. 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.
- 26. A type of market structure in which a market is controlled by one supplier, and there are no substitute goods or services readily available