Chapter 1 Flashcards
Value
The relationship between the price of a good or a service and the benefits that it offers its customers.
Business
Any organization or activity that provides goods and services in an effort to earn a profit.
Profit
The money that a business earns in sales (or revenue) minus expenses, such as the cost of goods and the cost of salaries. Revenue - Expenses = Profit (or Loss).
Entrepreneurs
People who risk their time, money and other resources to start and manage a business.
Standard of Living
The quality and quantity of goods and services available to a population.
Quality of life
The overall sense of well-being experienced by either an individual or a group.
Nonprofits
Business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain.
Factors of Production
Four fundamental elements–natural resources, capital, human resources, and entrepreneurship–that businesses need to achieve their objectives.
Business Environment
The setting in which business operates. The five key components are: economic environment, competitive environment, technological environment, social environment and global environment.
Business Technology
Any tools–especially computers, telecommunications, and other digital products–that businesses can use to become more efficient and effective.
World Wide Web
The service that allows computer users to easily access and share information on the Internet in the form of text, graphics, video, apps and animation.
E-commerce
The marketing, buying, selling, and servicing of products over a network (usually the Internet).
