Chapter 1 Flashcards
Define business
Any activity that provides goods or services to others while operating at a profit.
Define goods
Tangible products provided by a business
Define Services
Intangible products provided by a business
define entrepreneur
Someone who risk time and money to start and manage a business.
Define revenue
The total amount of money a business takes in during a given period by selling goods and services.
Define profit
The amount of money a business earns above and beyond what it spends for salaries and other expenses.
Define loss
When a business’s expenses are more than its revenues.
Define Risk
(1) The chance an entrepreneur takes of losing time and money on a business that may not prove profitable. (2) The chance of loss, the degree of probability of loss, and the amount of possible loss.
Standard of living.
The amount of goods and services people can buy with the money they have.
Define quality of life
The general well-being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure, and rewards that add to the satisfaction and joy that other goods and services provide.
Who are the 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.
Outsourcing
Contracting with other companies (often in other countries) to do some or all of the functions of a firm, like its production or accounting tasks.
Insourcing
Opposite of outsourcing, when foreign companies build goods or provide services in foreign markets.
Non-profit organization.
Is an organization who’s goals don’t include making its owners or organizations.
What’s the advantage of working for others.
Someone else takes the entrepreneurial risk and provides you with benefits
What’s the advantage to being an entrepreneur
More freedom to make decisions, opportunities, and possibly more wealth.
What are the five factors of production
- Land and other natural resources used to make products.
- Labor - people or technology used to produce goods
- Capital - machines and tools, sometimes money to buy factors of production but may not be a factor itself.
- Entrepreneurship willing to take on risk
- Knowledge to determine wants and needs and to respond with desired goods and services.
What’s the difference between rich and poor countries today?
A combination of entrepreneurship and effective use of knowledge.
What’s the disadvantage to entrepreneurship?
You have to provide any and all benefits to yourself.
What are the five elements in the business environment?
- Economic and legal environment
- The technological environment
- The competitive environment
- The social environment
- The global business environment
Economical and legal environment:
How can government help business
By allowing private entrepreneurship, passing contract laws, establish tradable currency, and minimize corruption.
What environment does the following
- Improving efficiency and productivity
- Allows the buying and selling of goods online (e-commerce)
- allows the creation of data bases for more responsive interaction with customers.
Technological
The process of _________________ helps businesses stay company by giving employees the ability, training, and equipment to exceed customer needs.
Empowerment.
The statistical study of human population is known as _______________.
Demography
