Chapter 2 Key Terms

2. the study of the economics of the entire society
4. 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
7. the difference between the assets and liabilities of the business
9. business assumes the cost of uninsurable risks
11. is the income form a venture is distributed to investors
12. the business is legally responsible for damages and might have to pay for the medical cost and other losses suffered by an injured person
14. the amount of satisfaction a person receives from the consumption of a particular product of service
15. amounts owed for purchases made on credit and loans
17. payment of insurance
19. the study of how goods and services are produced, distributed, and consumed
21. is developed to predict the expenses to be incurred and revenues to be received from an event
22. the amount of money remaining from revenues after all expenses are paid
23. sheet shows the company's assets and its liabilities at a specific point in time
24. the possibility of financial gain or loss or personal injury

1. a plan for how available funds will be spent
3. shows all the revenues received and all expenses incurred over a specific period of time
5. stages in which people advance from childish behavior to mature and responsible behavior based on principles
6. 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
8. the money a business receives from the sale of goods and services
10. are the high standards of rules and guidelines in both business and personal life
13. are a system of deciding what is right or wrong in a reasoned and impartial manner
16. making decisions to use resources in ways that result in the greatest profit
18. the study of the relationships between individual consumers and preoducers
20. items of value, including cash, property, and equipment