Chapter 1.1 Vocabulary & Notes Entrepreneurship Chapter 1.1 Vocabulary & Notes

Entrepreneur An individual who undertakes the creation, organization, and ownership of a business

Venture A new business undertaking that involves risk

Entrepreneurship The process of recognizing an opportunity, testing the market and gathering resources necessary to go into business

Entrepreneurial Having an entrepreneurial mindset, thinking of how to create a product or service that is needed by customers To profit from as well

Economics The study of how people choose to allocate scarce resources to fulfill their unlimited wants How much is being bought by people and what are they willing to spend?

Free Enterprise System System that people have the right to make economic choices You buy whatever you want You are free to open a business Promotes competition between companies

Profit The amount of money that is left after all expenses have been deducted while operating a business

Market Structure The amount of competition in an industry How many different businesses are selling a particular product or service Example: cellular phone service At&t, Verizon, Sprint, T-Mobile

Monopoly A market structure that has only one seller in an industry One company dominates the market and controls supply and price

Short Essay Name, Date, 1 paragraph Pretend you won a shopping spree at the mall, what are your top 3-5 purchases? Previous entrepreneurial experience Grass cutting Lemonade stand Fundraising

Goods Tangible, physical products that consumers purchase

Services Intangible, nonphysical products that consumers purchase

Need A basic requirement for survival Food Water Shelter

Want Something not absolutely necessary for survival, but you would like to have it

Factors of Production The resources businesses use to produce the goods and services that people want to buy 4 Factors: Land Labor Capital Entrepreneurship

Scarcity Occurs when demand exceeds supply When you want to buy something but it is not available

Demand The quantity of goods and services that consumers are willing and able to buy

Supply That amount of goods and/or services that producers are willing to provide

Equilibrium A point at which consumers buy all of a product that is supplied

Gross Domestic Product (GDP) The total market value of all goods and services produced by a given nation over a certain time period

Business Cycle The general expansion and contraction that the economy goes through