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 ten stakeholders (for any business)
shareholders, customers, surrounding community, environmentalists, dealers (retailers), 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
