Ch 1- Taking Risks And Making Profits Within The Dynamic Business Environment Flashcards
Goods
Tangible products such as clothing, cars, furniture, etc.
Business
Any activity that seeks to provides goods and services to others while operating at a profit.
Services
Intangible products such as education, health care, insurance, recreation, etc.
Entrepreneur
A person who risks time and money to start and manage a business.
Revenue
The total amount of money a business takes in during a given period by selling goods and services.
Profit
The amount of money and business earns above and behind what it spends for salaries and other expenses.
Revenue > expenses
Loss
When a business expenses are more than it’s revenues.
Revenues < expenses
Quality of life
The general well being of a society in that adds to the satisfaction and joy that other goods and services provide.
Standard of living
The among of goods and services people can buy with the money they have.
Stakeholders
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.
Includes customers, employees, suppliers, dealers, etc.
Outsourcing
Contracting with other companies often in other countries to do some or all of the functions of a firm like it’s production or accounting tasks.
Nonprofit organization
An organization whose goals do not include making a personal profit for it’s wonder or organizers.
Factors of production
The resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge.
Business environment
The surrounding factors that either help or hinder the development of businesses.
Risk
The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.
