Ch.1 Flashcards
Business
is an organization that strives for a profit by providing goods and services desired by its customers.
Goods
are tangible items manufactured by businesses, such as laptops.
Services
are intangible offerings of businesses that can’t be held, touched, or stored.
Standard of Living
of any country is measured by the output of goods and services people can buy with the money they have.
Quality of Life
refers to the general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time.
Risk
is the potential to lose time and money or otherwise not be able to accomplish an organization’s goals.
Revenue
is the money a company receives by providing services or selling goods to customers.
Costs
are expenses for rent, salaries, supplies, transportation, and many other items that a company incurs from creating and selling goods and services.
Profit
A company has money left over after it pays all costs.
Not for Profit Organization
is an organization that exists to achieve some goal other than the usual business goal of profit.
Factors of Production
To provide goods and services, regardless of whether they operate in the for-profit or not-for-profit sector, organizations require inputs in the form of resources.
Capital
The tools, machinery, equipment, and buildings used to produce goods and services and get them to the consumer.
Entrepreneurs
are the people who combine the inputs of natural resources, labor, and capital to produce goods or services with the intention of making a profit or accomplishing a not-for-profit goal.
Knowledge
refers to the combined talents and skills of the workforce and has become a primary driver of economic growth.
Demography
is the study of people’s vital statistics, such as their age, gender, race and ethnicity, and location.
