Business Essentials - THE BUSINESS ENVIRONMENT

3. Internal stakeholders whose main goal is meeting profit targets, not owning the capital.
5. An external environmental factor that restricts or limits a firm’s behavior and performance.
7. A need that economic actors choose to satisfy specifically through the market. (two words)
8. A group of firms producing products or services that act as direct substitutes for each other.
10. A consumer need that is backed by a real willingness and ability to pay. (two words)
11. Mechanisms (market, organizational, or institutional) required by economic actors because specialization creates interdependence.
13. Type of business behavior where a firm actively shapes its environment through innovation or lobbying, instead of just reacting (e.g., Apple).
14. A market structure dominated by a few large, interdependent sellers/firms with high entry barriers (e.g., Boeing vs. Airbus).
15. Any person or group that has a significant, lasting, and mutual relationship with a firm.
16. The central process where a firm must create value for both customers and owners at the same time. (two words)

1. Opportunistic tension between owners and managers caused by information asymmetry. (two words)
2. The specific price-quantity combination where planned buying and planned selling match perfectly in a market.
4. The basic economic problem where human wants are unlimited but available resources are limited.
6. A 6-dimension macroeconomic framework used to map the external environmental forces (Political, Economic, Sociocultural, Technological, Environmental, Legal).
9. A higher-level goal that motivates individuals with different personal goals to cooperate.
12. A market structure with a single dominant seller who has very strong market power and no close substitutes.