AP®︎ Business with Personal Finance: Topic 1.2 Flashcards

Any physical or virtual space in which sellers interact with buyers

An exchange buyers and sellers choose because each expects to benefit

The amount a business receives from sales; it is not the same as profit

The price or narrow range of prices at which a product is commonly exchanged, emerging from repeated buyer-seller interactions

The amount and nature of rivalry in a market, shaped by the number of rivals and offerings, product differentiation, and rivals’ ability to offer similar products at lower prices

A business’s ability to outperform rivals in the same market, leading to increased market share and potentially increased profits

The portion of total sales in a defined market accounted for by one business, measured consistently by units, customers, or revenue

Making a product meaningfully distinct from rival offerings through features or benefits customers value

A standardized or largely interchangeable product for which buyers perceive little difference among qualified sellers

An obstacle that makes it difficult for a new business to compete effectively, such as intellectual property rights, regulations limiting rivals, limited access to suppliers, high startup costs, or scale-supported low prices

Enforceable legal rights that can restrict rivals from copying protected creations or inventions

An exclusive legal right to an invention for a limited period, subject to the patent’s terms

A market without competition in which one business is the sole provider of a unique good or service

Define the market, assess competition, identify a customer priority, select supporting actions, explain the expected outcome, and recognize costs and risks

Check whether the plan fits the market, creates a valued and deliverable difference, is financially sustainable, and can plausibly increase customer preference and market share