APP 004

• Market is place where buyers and sellers can meet to facilitate the exchange or transaction of goods and services.
• Adam’s Smith’s Laissez Faire doctrine States that the market is a free market where those producers and consumers act in accordance to their own interest.
• Adam’s Smith’s Laissez Faire doctrine says “Give me that which I want, and you shall have which what you want.”
• Trade is the basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties.
• Commerce is the exchange of goods and services, especially on a large scale.
• Product or Service Specialization are Businesses bring “specialized” people, equipment, and other resources together and coordinate the production of goods and services.
• Economies of Scale is When more units of a good or service can be produces on a larger scale, yet with (on average) less cost input cost, economies of scale are achieved. This means business grows and production units increased, a business will have a better chance to decrease its cost.
• Positive and Negative Externalities is Defined as a benefit or cost that is imposed on a third party, such as society, other than the producer or consumer of a good and service or more simply and economic side effects.
• Business opportunity in the simplest terms, is a packaged business investment that allows the buyer to begin a business.
• Distributorship is the agreement to offer and sell the product of another.
• Distributorship involves entering into an agreement to offer and sell the product of another, without being entitled to use the manufacturers’ trade name as part of the agent’s trade name.
• Rack Jobbing is the agreement with the parent company to market their goods to various stores by means of strategically located store racks.
• Vending Machine Routes is when a businessperson must buy the machines as well as the merchandise being sold in them, operator typically pays the location owner a percentage based on sales.
• The term business model refers to a company's plan for making a profit. It identifies the products or services the business plans to sell, its identified target market, and any anticipated expenses.
• Business model is a description of how your business makes money. It’s how you deliver value to your costumers at an appropriate cost.
• Advertising is the fundamentals of the model revolve around creating content that people want to read or watch and then displaying advertising to your readers or viewers.
• Affiliate is when the affiliate model uses links embedded in content instead of visual advertisements that are easily identifiable.
• Brokerage Its businesses connect buyers and sellers and help facilitate a transaction.
• brokerage charge a fee for each transaction to either the buyer or the seller and sometimes both.
• Franchise means You are selling the recipe for starting and running a successful business to someone else.
• franchise also means selling access to a national brand and support services that help the new franchise owner get up and running.
• Marketplaces Allow sellers to list items for sale and provide customers with easy tools for connecting to sellers.
• Pay-as-you-go Instead of pre-purchasing a certain amount of something, such as electricity or cell phone minutes, customers get charged for actual usage at the end of a billing period.
• leasing is like renting.
• Leasing means at the end of a lease agreement, a customer needs to return the product that they were renting from you.