ch 1

Question 1

business

Answer 1

any activity that seeks to provide goods and services to others while operating profit

Question 2

goods

Answer 2

tangible products like computers, food, clothing, cars, and appliances

Question 3

services

Answer 3

intangible products like education, healthcare, insurance, recreation, travel , and tourism

Question 4

entrepreneur

Answer 4

someone who risks time and money to start and manage a business

Question 5

revenue

Answer 5

total amount of money a business takes in during the time of selling goods and services

Question 6

profit

Answer 6

amount of money a business earns above what it spends on salary and expenses

Question 7

loss

Answer 7

occurs when a business’s expenses are more than their revenue

Question 8

risk

Answer 8

the chance an entrepreneur takes of losing time and money on a business that may not prove to be profitable

Question 9

a business’s wealth =

Answer 9

the quality of life and standard of living

Question 10

standard of living

Answer 10

the amount of goods and services people can buy with the money they have

Question 11

quality of life

Answer 11

general well being of a society in terms of its political freedom, natural environment, education, healthcare, safety, amount of leisure, and rewards that add to the satisfaction and joy that other goods and services provide

Question 12

stakeholders

Answer 12

all the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address stake holders, including customers, employees, stockholders, suppliers, dealers, retailers, bankers, the community, media, environmentalists, competitors, unions, critics, and government leaders

Question 13

outsourcing

Answer 13

contracting with other companies to do some or all functions in a firm (production or accounting)

Question 14

insourcing

Answer 14

creates jobs in the US to help offset those jobs being outsourced

Question 15

nonprofit organizations

Answer 15

an organization whose goals dont include making a personal profit for is owners or organizers

Question 16

what are 2 easy ways to succeed in business

Answer 16

rise through the ranks of a large company or become an entrepreneur

Question 17

what are the 5 factors of production

Answer 17

-labor -land -capital -entrepreneurship -knowledge

Question 18

land

Answer 18

natural resources, used to make homes, cars, and other products

Question 19

labor

Answer 19

workers, produces goods and services

Question 20

capital

Answer 20

includes machines, tools, buildings, and doesnt include money

Question 21

entrepreneurship

Answer 21

all resources have little value unless entrepreneurs take risks

Question 22

knowledge

Answer 22

information technology has revolutionized business

Question 23

what involves the business environment

Answer 23

the economic and legal environment
the technological environment
the competitive environment
the social environment
the global business environment

Question 24

the creations of economic and legal environment

Answer 24

-contract laws
-freedom of ownership
-elimination of corruption
-tradable currency
-minimum taxes and regulations

Question 25

the creations of technological environment

Answer 25

-information technology
-databases
-bar codes
-the Internet

Question 26

the creations of the competitive environment

Answer 26

-customer service
-employee service
-stakeholder recognition
-concern for the environment

Question 27

the creations of the social environment

Answer 27

-diversity
-demographic changes
-family changes

Question 28

a way to actively promote entrepreneurship

Answer 28

allow private ownership of businesses

Question 29

the government can lessen the risks of entrepreneurship by…

Answer 29

passing laws that enable business people to write enforceable contracts and establish a currency thats tradeable in world markets

Question 30

technology

Answer 30

everything from phones, computers, social media, mobile devices, medical imaging machines, robots, the internet, software programs and apps

Question 31

effectiveness

Answer 31

producing the desired result

Question 32

efficiency

Answer 32

producing goods and services using the least amount of resources

Question 33

productivity

Answer 33

amount of output you generate given the amount of input such as the number of hours you work

Question 34

the more work you produce….

Answer 34

…the more money you are worth to big companies

Question 35

circular economy

Answer 35

the reusing, redistribution, refurbishing, and recycling of products instead of dumping them into landfills

Question 36

e-commerce

Answer 36

the buying and selling of goods online

Question 37

2 types of major e commerce are

Answer 37

B2B sales and B2C sales (business to business and business to customer)

Question 38

identity theft

Answer 38

the obtaining of an individual’s information

Question 39

the process of empowerment

Answer 39

firms giving their frontline workers the responsibility and training they need to respond quickly to customer requests. they also must allow workers to make other decisions essential to producing high quality goods and services

Question 40

demography

Answer 40

the statistical study of the human population in regards to its size, density, and other characteristics, such as race, age, gender, and income

Question 41

the global environment of business is so important that we show it as surrounding all other environmental influences

Answer 41

1) growth of global competition and 2) the negotiation of trade agreements among nations