Ch. 1 Flashcards
success in business is …
finding a need for some goods, or services and filling that need
define “goods”
tangible products (things you can touch and see)
define “services”
intangible products (like car insurance)
a business is any activity that …
seeks to provide goods and services to others while operating at a profit
an entrepreneur is a person who…
risks time and money to start and manage a business
profit is …
the amount of money a business earns above and beyond what it spends for salaries and other expenses
define “risk”
the chance an entrepreneur takes of losing time and money on a business that may not prove profitable
the term “standard of living” refers to …
the amount of goods and services people can buy with the amount of money they have
Canada enjoys a high standard of living partly because …
of the wealth created by its businesses
the term “quality of life” refers to …
the general well-being of a society
list examples of “quality of life” indicators (6)
political freedom, natural environment, education, health care, safety, and amount of leisure
list the first five stakeholders (for any business)
shareholders, customers, surrounding community, environmentalists, dealers (retailers)
list the last/other five stakeholders (for any business)
employees, government leaders, suppliers, media and bankers
offshoring entails …
sourcing part of the purchased inputs outside of the country
outsourcing means …
contracting with other companies to do some or all of the functions of a firm, such as production or accounting
insourcing is a relatively new term used to describe …
the situation where a company has functions that could be outsourced
a non-profit organization is an organization …
whose goals do not include making a personal profit for its owners or organizers
list three examples of a non-profit
heart and stroke foundation, cancer society and Canada blood services
social entrepreneurs are people who … (provide an example of the process)
use business principles to start and manage a non-profit organizations and help countries with their social issues (micro-lending is an example)
list the two ways to succeed in business
work within a company and rise to the top or start your own business
the advantage of working for others is that …
somebody else assumes the entrepreneurial risk and provides you with benefits
list the five factors of production
land (natural resources), labour (workers), capital (physical assets not money), entrepreneurship and knowledge
