AP®︎ Business with Personal Finance: Topic 1.5 Flashcards

Defining beliefs and principles that guide an individual’s or business’s actions and choices

Capabilities, skills, and expertise that help an individual or business perform effectively, outperform rivals, and achieve competitive advantage

A concise description of a business’s core values and long-term aspirations or desired future

A description of what a business does and how it will achieve its long-term goals

A business that seeks profit, fulfills its mission and goals, remains competitive, and maintains long-term viability; its owners may benefit from profit

The amount by which revenue exceeds costs: profit = revenue − costs; it rises when revenue increases or costs decrease

A business that seeks to generate profit while also achieving social objectives through its products, operations, or financial model

An organization that serves the public good rather than generating distributable profit for owners; any surplus must be reinvested in the organization

Identify the organization’s values, aspirations, work, and methods; express values and aspirations in the vision and work and methods in the mission; then check both for alignment with each other and the scenario