Chapter 1 Entrepreneurship Flashcards
Entrepreneurship and Wealth Building
Services
Intangible products such as education, health care, insurance, recreation, travel, and tourism.
Goods
Tangible products such as computers, food, clothing, cars, and appliances.
Business
Is any activity that seeks to provide goods and services to others while operating at a profit.
Entrepreneur
Person who risks time and money to start and manage a business.
Profit
The amount of money a business earns above and beyond what it spends for salaries and other expenses needed to run the operation.
Loss
Occurs when a business’s expenses are more than its revenue.
Risk
Chance an entrepreneur takes of losing time and money on a business that may not prove profitable.
Standard of living
The amount of goods and services people can buy with the money they earn.
Qulaity of Life
The general well-being of a society in terms of it’s political freedom, natural enviroment, education, health care, safety, amount of leisure, and rewards that add to the satisfaction and joy that other goods and services provide.
Stakeholders
All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.
Outsourcing
Contracting with other companies (often in other countries) to do some or all of the functions of a firm, like its production or accounting tasks.
Nonprofit Organization
An organization whose goals do not include making a personal profit for its owners or organizers.
Factors of Production
The resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge.
Business Enviroment
The surrounding factors that either help or hinder the development of business.
Technology
Everything from phones and copiers to computers, medical imaging devices, personal digital assistants, and the various software programs that make business processes more effective, efficient, and productive.
