Chapter 1 Flashcards
what is success in business derived from?
adding value and finding and filling a need
what are examples of goods?
(anything that you can hold)
manufacturing
construction
utilities
agriculture
forestry
fishing
mining
quarrying
oil and gas
what are examples of service industries?
(products that cannot be held in your hands)
education
health care
insurance
what is a business?
any activity that seeks to provide goods and services to others while operating at a profit
what is a profit?
the amount of money a business earns above and beyond what is spent on salaries and other operating expenses
what is an entrepreneur?
a person who risks time and money to start and manage a business
what is risk?
the chance an entrepreneur takes of losing time and money on a business that may not prove profitable
what is offshoring?
sourcing part of the purchased inputs outside of the country
what is outsourcing?
contracting with other companies to do some or all of the functions of a firm
what is insourcing?
a company has functions that could be outsourced but use their own company to complete that function
what are shareholders?
someone who buys and owns shares and get profits from dividends
what are bankers?
works with the banks giving out loans
what are customers?
someone who benefits from the services the business provides
what is the surrounding community?
people who will be effected by the business being in their community
what are environmentalists?
someone who makes sure the company is following environmental rules
what are retailers/dealers?
a store who stocks the businesses products
how do government leaders effect a business?
they set regulations, policies and increase or decrease taxes
what are suppliers?
someone who provides the goods or services to the retailers to provide to the customers
how does media effect businesses?
they leak scandals and provide information to the customers
what is a non profit organization?
an organization whose goals do not include making a personal profit for Its owners
what is a social entrepreneur?
someone who uses business principles to start and manage non-profit organizations
name the five factors of production?
land
labour
capital
entrepreneurship
knowlage
what is the internal environment in a business?
the factors present within the organization to influence the companies decisions and operations
what is the external environment in a business?
the forces outside the businesses control that may influence the decisions and operations
how do legal regulations effect businesses?
gives them guidelines on how they must operate and to eliminate corruption
name the five factors of the economic environment?
rates of saving and investment
tradable currency (money supply)
taxes and regulations
imports and exports
employment levels and productivity
what is foreign exchange?
the movement of a country currency relative to other currencies also pertains to the economic environment
name the six things that make up the technological environment?
information and technology
databases
QR codes
internet
wireless communication
social media marketing
what does B2C stand for?
business to consumer
what does business to consumer entail?
B2C is the regular business that companies do online with individual customers
what does B2B stand for?
business to business
what does business to business entail?
B2B is businesses doing business with other businesses
what does B2G stand for?
business to government
what does business to government entail?
B2G is the business that companies do with government agencies and departments to supply goods and services
what does G2C stand for?
government to consumer
what does government to consumer entail?
the business that the government does online with people (such as renewing licenses)
what is a competitive environment?
it is how companies operate and interact within their markets and how their decisions might impact their business
name four competitive strategies?
exceed customer expectations
deliver faster
restructuring and empowerment
concern for environment
name seven factors in a social environment?
diversity
demographic changes
family composition and life expectancy
consumption habits
attitudes towards product innovations, lifestyles, occupational distribution and consumer preferences
educational system and literacy rates
values, traditions, social trends
name four factors in the global environment?
international events
serving global markets
global trade competition
rapid change
what are the 11 kinds of stake holders in business?
shareholders
bankers
customers
surrounding community
environmentalists
retailers
employees
government leaders
suppliers
media
what are the 5 elements of the business environment?
legal environment
social environment
economic environment
competitive environment
technological environment
