Ch. 1: The Business Environment And Economics Flashcards
What is revenue?
The total amount a business makes
What is the difference between goods and services?
Goods are tangible while services are not tangible
What is profit?
The total amount a business makes after expenses/needed costs
What is a loss?
When a business has more expenses than revenue
What is an entrepreneur?
People who risk time and money to start and manage a business
What is risk?
The chance an entrepreneur takes of losing time/money on a business that may not do well
What is a business?
An activity aimed at providing goods and/or services while managing a profit
What are stakeholders?
Anyone who gains or loses from a business’ policies
What is standard of living?
Level of income, comforts, and services available. Usually measured by GDP, and is applied to a society/location not an individual.
What is a nonprofit?
Financial gains are used to meet their goals, not for personal profit. Ie: public schools
What are the 5 elements in the business environment?
Competitive, Global Business, Economic and Legal, Technological, Social. CGELTS.
What impacts the social environment of business?
Demography
What can technology do for businesses?
Make them more effective and efficient
What is productivity?
The amount of output vs the amount of input.
What goes needs to happen in the competitive environment of business?
Companies need:
High quality products/services at competitive prices
Understand customers’ wants/needs
Strong relationship with suppliers
Differentiate themselves
