Ch1 Key Terms - 6. Capitalism: Economic system based on...

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Eryn Welch 10 Key Terms Chapter 1 1. Barriers to entry: Factors that make it difficult to launch a business in a particular industry. 2. Business: A profit-seeking enterprise that provides goods and services that a society wants or needs. 3. Business Cycle: Fluctuations in the rate of growth that an economy experiences over a period of several years. 4. Capital: A collective term for both the funds used to finance a company’s operations and its physical, human-made assets such as factories and computers. 5. Capital-intensive businesses: Businesses that require large investments in capital assets.
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Unformatted text preview: 6. Capitalism: Economic system based on economic freedom, private ownership and competition. 7. Communism: Economic system in which the government owns and operates all productive resources and determines all significant economic choices. 8. Competition: Rivalry among businesses for the same customer. 9. Competitive advantage: A companys ability to perform in one or more ways that competitors cannot match. 10. Consumer price index (CPI): Monthly statistic that measures changes in the prices of about 400 goods and services that consumers buy,...
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This note was uploaded on 04/21/2008 for the course BUS 1750 taught by Professor Reck during the Winter '07 term at Western Michigan.

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