CHAPTER 1

Question 1

BUSINESS

Answer 1

Any organization or activity that provides goods and services in an effort to earn a profits

Question 2

Nonprofit organizations

Answer 2

causes not profit.

Question 3

Profit

Answer 3

• the financial reward that comes from starting and running a business.
• The money that a business earns in sales (or revenue) minus expenses.

Question 4

Natural Resources

Answer 4

land, water, wind, minerals

Question 5

Capital

Answer 5

machines, tools, buildings, information, technology

Question 6

Human Resources

Answer 6

physical, intellectual and creative contributions of labor

Question 7

Entrepreneurship

Answer 7

• People who take the risk of time and money to start or manage a business
• Entrepreneurship is a key factor.
• Most growing economies support and promote entrepreneurship.

Question 8

The Economic Environment

Answer 8

the state of the economy and current actions by government agencies and consumers

Question 9

The Competitive Environment

Answer 9

• Many companies competing on customer satisfaction
• Leading Edge Products
  • Speed to Market
• The Workforce Advantage

Question 10

Technological Environment

Answer 10

the World Wide Web and digital tools have transformed business and people’s lives

Question 11

The Social Environment

Answer 11

−Diversity
−Aging Population
−Rising Worker Expectations
−Ethics and Social Responsibility

Question 12

The Global Environment

Answer 12

the U.S. interacts with other economies across the world, especially as technology grows

Question 13

Loss

Answer 13

when a business incurs expenses that are greater then its revenue

Question 14

Standard of Living

Answer 14

the quality and quantity of goods and services available to a population