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Econ. Ch. 10 Vocab.
Term | Definition |
---|---|
financing | obtaining funds or money capital for business expansion |
cost-benefit analysis | a financial process in which a business estimates the cost of any action and compares it with the estimated benefits of that action |
revenues | total income from sales of output |
profits | the amount earned after a business subtracts its costs from its revenues |
debt financing | raising funds for a business through borrowing |
short-term financing | funds borrowed by a business for any period of time less than a year |
intermediate-term financing | funds borrowed by a business for 1 to 10 years |
long-term financing | funds borrowed by a business for a period of more than 10 years or funds raised by issuing stock |
production | process of changing resources into goods that satisfy the needs and wants of individuals and businesses |
consumer goods | goods produced for individuals and sold directly to the public to be used as they are |
mechanization | combined labor of people and machines |
assembly line | production system in which the good being produced moves on a conveyor belt past workers who perform individual tasks in assembling it |
division of labor | the breaking down of a job into small tasks performed by different workers |
automation | production process in which machines do the work and people oversee them |
robotics | sophisticated, computer-controlled machinery that operates an assembly line |