2.05 Key Terms

5. Money left after the cost- of- goods expense is subtracted from total income (income from sales- cost of goods= gross profit)
8. The rivalry between two or more businesses to attract scarce customer dollars
9. A type of rivalry between or among businesses that involves factors other than price.
10. competition Rivalry between or among businesses that offer similar types of goods or services
11. of goods 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 two products (or for any part of the products) it sells
17. Rivalry between or among businesses that offer dissimilar goods or services.
21. 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.
22. Chances of loss that may result in loss, no change, or gain.
23. The possibility of loss or failure from human error
24. risk The possibility of loss (failure) or gain (success) inherent in conducting business
25. Chances of loss that carry with them the possibility of loss or no loss.
26. The possibility or failure from nature
27. The desire to make a profit, which moves people to invest in business.
28. A risk-response strategy that involves assuming responsibility for the risk rather than transferring it

1. Monopolies that the government allows to exist legally under controlled conditions.
2. All the expenses involved in running a business.
3. The money received by resource owners and by producers for supplying goods and services to customers
4. A risk-response strategy that involves trying to reduce the chance of loss or severity of loss
6. A type of market structure in which a market is controlled by one supplier, and there are no substitute goods or services readily available
7. The type of market, or environment, in which businesses operate.
12. 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)
13. a reaction to conflict that involves ignoring the problem by doing nothing at all, or deemphasizing the disagreement
14. Money left after the cost-of-goods expense are each subtracted from the total income (gross profit-operating expense=net profit
15. A market structure in which there are relatively few sellers, and industry leaders usually determine prices
16. The possibility of loss or failure that occurs because of the economy
18. The money that a business spends
19. A type of rivalry between or among businesses that focuses on the use of price to attract scarce customer dollars.
20. A risk-response strategy that involves moving the impact of a risk to someone or something else