Chapter 1

Question 1

Define business

Answer 1

Any activity that provides goods or services to others while operating at a profit.

Question 2

Define goods

Answer 2

Tangible products provided by a business

Question 3

Define Services

Answer 3

Intangible products provided by a business

Question 4

define entrepreneur

Answer 4

Someone who risk time and money to start and manage a business.

Question 5

Define revenue

Answer 5

The total amount of money a business takes in during a given period by selling goods and services.

Question 6

Define profit

Answer 6

The amount of money a business earns above and beyond what it spends for salaries and other expenses.

Question 7

Define loss

Answer 7

When a business’s expenses are more than its revenues.

Question 8

Define Risk

Answer 8

(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.

Question 9

Standard of living.

Answer 9

The amount of goods and services people can buy with the money they have.

Question 10

Define quality of life

Answer 10

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.

Question 11

Who are the Stakeholders

Answer 11

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.

Question 12

Outsourcing

Answer 12

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.

Question 13

Insourcing

Answer 13

Opposite of outsourcing, when foreign companies build goods or provide services in foreign markets.

Question 14

Non-profit organization.

Answer 14

Is an organization who’s goals don’t include making its owners or organizations.

Question 15

What’s the advantage of working for others.

Answer 15

Someone else takes the entrepreneurial risk and provides you with benefits

Question 16

What’s the advantage to being an entrepreneur

Answer 16

More freedom to make decisions, opportunities, and possibly more wealth.

Question 17

What are the five factors of production

Answer 17

1. Land and other natural resources used to make products.
2. Labor - people or technology used to produce goods
3. Capital - machines and tools, sometimes money to buy factors of production but may not be a factor itself.
4. Entrepreneurship willing to take on risk
5. Knowledge to determine wants and needs and to respond with desired goods and services.

Question 18

What’s the difference between rich and poor countries today?

Answer 18

A combination of entrepreneurship and effective use of knowledge.

Question 19

What’s the disadvantage to entrepreneurship?

Answer 19

You have to provide any and all benefits to yourself.

Question 20

What are the five elements in the business environment?

Answer 20

1. Economic and legal environment
2. The technological environment
3. The competitive environment
4. The social environment
5. The global business environment

Question 21

Economical and legal environment:

How can government help business

Answer 21

By allowing private entrepreneurship, passing contract laws, establish tradable currency, and minimize corruption.

Question 22

What environment does the following

1. Improving efficiency and productivity
2. Allows the buying and selling of goods online (e-commerce)
3. allows the creation of data bases for more responsive interaction with customers.

Answer 22

Technological

Question 23

The process of _________________ helps businesses stay company by giving employees the ability, training, and equipment to exceed customer needs.

Answer 23

Empowerment.

Question 24

The statistical study of human population is known as _______________.

Answer 24

Demography