CHAPTER 1

Question 1

Revenue

Answer 1

Money a company brings in through the sale of goods and services

Question 2

Business

Answer 2

Any profit seeking organization that provides goods and services designed to satisfy customers needs

Question 3

Business model

Answer 3

A concise description of how a business generates or intends to generate revenue

Question 4

Profit

Answer 4

Money left over after all the costs involved in doing business have been deducted from revenue

Question 5

Competitive advantage

Answer 5

Some aspect of a company or its operations that enables it to create products with greater appeal to its target customers

Question 6

Non-for-profit organizations

Answer 6

Organizations that provide goods and services without having a profit motive, also called nonprofit organizations

Question 7

How to categorize business?

Answer 7

(PCGO) Product type, Company size, Geographic reach, Ownership

Question 8

Business mindset

Answer 8

Adopting an insider’s view of business with an appreciation for the decisions to be made and challenges that managers face

Question 9

Stakeholders

Answer 9

Internal and external groups affected by a company’s decisions and activities

Question 10

What are the 5 environments of business

Answer 10

(SMELT) Social, Market, Economic, Legal and regulatory, Technological

Question 11

Gig economy

Answer 11

Portion of the economy composed of people who work as independent contractors on a series of short-term projects or tasks

Question 12

Barriers to entry

Answer 12

Resources or capabilities a company must have before it can start competing in a given market

Question 13

Tangible goods

Answer 13

Goods that have a physical presence

Question 14

What are the 6 basic building blocks of a business in general?

Answer 14

(BHRMMF) Business services, Human resources, Research and development, Manufacturing, Marketing, Finance and accounting

Question 15

Professionalism

Answer 15

The quality of performing at a high level and conducting oneself with purpose and pride

Question 16

Etiquette

Answer 16

The expected norms of behavior in any particular situation

Question 17

Digital enterprise

Answer 17

Any company that uses digital systems as one of the foundations of its value-creation processes, regardless of what industry it is in or what products it makes

Question 18

What are the 7 major business fields?

Answer 18

(HOMIFAS) Human resource specialist, Operations manager, Marketing specialist, IT manager, Financial manager, Accountant, Sales proffesional

Question 19

Disruptive innovation

Answer 19

A development so fundamentally different and far-reaching that it can create new proffesions, companies, or even entire industries while damaging or destroying others

Question 20

Digital transformation

Answer 20

The process of reimagining a company’s business model and operations to become a digital enterprise

Question 21

Social environment

Answer 21

Trends and forces in a society a large

Question 22

Technological environment

Answer 22

Forces resulting from the practical application of science to innovations, products and processes

Question 23

Economic environment

Answer 23

The conditions and forces that affect cost and avaliability of goods, services, and labor and thereby shape the behavior of buyers and sellers

Question 24

Legal and regulatory environment

Answer 24

Laws and regulations at local, state, national and even international levels

Question 25

Market environment

Answer 25

A company’s target customers, the buying influencers that shape the behavior of those customers, and competitors that market similar products to those customers

Question 26

Research and development

Answer 26

Functional area responsible for conceiving and designing new products

Question 27

Operations manager

Answer 27

Management of the people and processes involved in creating goods and services

Question 28

Information technology

Answer 28

A functional area of business as well as the systems responsible fot gathering, processing and distributing information where needed throughout an organization