Chapter 1

Question 1

Business

Answer 1

Any activity that provides goods or services to consumers for the purpose of making a profit

Question 2

Profit

Answer 2

The amount of revenue or income that a business owner retains after paying all the expenses associated with the operation of the business

Question 3

Loss

Answer 3

The expenses of the business exceed the revenue or income generated from operations

Question 4

Value

Answer 4

The relationship between the price a customer pays for the good or service and the perceived benefits the customer receives in exchange for his or her time and money

Question 5

Non-Profit

Answer 5

Provides goods or services to consumers, but its primary goal is not to return profit to the owners of the business (as is the case with a for-profit business). Instead, it uses those profits to provide a public service, advance a cause, or assist others

Question 6

Four Factors of Production

Answer 6

Naturals Resources
Labor/Human Capital
Capital
Entrepreneurship

Question 7

Primary Functional Areas of Business

Answer 7

Management
Operations
Marketing
Accounting
Finance

Question 8

Internal Stakeholders

Answer 8

Employees
Managers
Owners

Question 9

External Stakeholders

Answer 9

Suppliers
Society
Government
Creditors (Lenders)
Shareholders
Customers

Question 10

External Forces

Answer 10

Economic Environment (Business Cycle)
Legal Environment
Competitive Environment
Technological Environment
Social Environment (Demographics & Corporate Resp.)
Global Environment (Free Trade)