Chapter 2 Vocabulary

4. business assumes the cost of uninsurable risks
5. the study of how goods and services are produced, distributed, and consumed
7. shows all the revenues received and all expenses incurred over a specific period of time
11. the possibility of financial gain or loss or personal injury
12. stages in which people advance from childish behavior to mature and responsible behavior based on principles
14. the study of the economics of the entire society
15. is a plan for how available funds will be spent
16. making decisions to use resources in ways that result in the greatest profit
17. the amount of money remaining from revenues after all expenses are paid
19. the difference between the assets and liabilities of the business
22. amounts owed for purchases made on credit and loans
23. are a system of deciding what is right or wrong in a reasoned and impartial manner

1. the study of the relationships between individual consumers and preoducers
2. involves preventing, reducing, or lessening the negative impact of risk by using the strategies of risk avoidance, risk insurance, risk transfer, and/or risk retention
3. items of value, including cash, property, and equipment.
6. shows the company's assets and its liabilities at a specific point in time
8. are the high standards of rules and guidelines in both business and personal life
9. the money a business receives from the sale of goods and services
10. the amount of satisfaction a person receives from the consumption of a particular product of service
11. is the income form a venture is distributed to investors
13. payment of insurance
18. requires a company to budget for its own marketing activities and to provide customers with assistance in paying for the company's products and services
20. the business is legally responsible for damages and might have to pay for the medical cost and other losses suffered by an injured person
21. is developed to predict the expenses to be incurred and revenues to be received from an event