Chapter 1: Intro to Business

Question 1

Goods vs Services

Answer 1

-tangible vs non tangible items

Question 2

entrepreneur

Answer 2

someone who takes risks (money and time) to manage or start a business

Question 3

revenue

Answer 3

money gathered from the selling a good or service

Question 4

profit

Answer 4

revenue>expenses

Question 5

loss

Answer 5

expenses>revenue

Question 6

standard of living

Answer 6

how much it costs to survive in a given area

Question 7

quality of life

Answer 7

well being of a society of people

Question 8

stakeholders

Answer 8

people who stand to gain or lose by the policies of a business (consumers, investors, etc.)

Question 9

outsourcing

Answer 9

contracting other companies to spread out the workload of a particular company

Question 10

Advantages/disadvantages of being an entrepreneur

Answer 10

-A: freedom to succeed, make own choices, wealth
-D: failure, no fringe benefits

Question 11

since the mid 1980s what sector has generated the most increases in employment

Answer 11

service

Question 12

what must companies to do be competitive in today’s market?

Answer 12

-offer high quality products and outstanding service at competitive prices

Question 13

government might do what to encourage entrepreneurial growth

Answer 13

pass laws that enable businesspeople to write contracts that are enforceable in court (no differing policies)

Question 14

Factors of production and examples

Answer 14

-land
-labor
-capital
-entrepreneurship ability (knowledge)
-technology

Question 15

5 types of business environments

Answer 15

Economic and legal
Technological
social
global
competitive

Question 16

Economic and Legal environment (how the government can promote entrepreneurship)

Answer 16

(+)freedom to choose and start your own business
(-)high taxes
Also: minimum taxes/regulation, tradable currency, minimize trade barriers

Question 17

Technological environment

Answer 17

(+) the internet, bar codes, data bases, information technology
(-) identity theft is a challenge

Question 18

social environment

Answer 18

(+)wealthy senior citizens, diversity and inclusion, demographic changes, family changes
(-)decrease in social contributions

Question 19

competitive environment:

Answer 19

-exceeding consumer expectations and giving frontline workers the power to respond to customer request
-customer service, stakeholder recognition, employee service, concern for the environment

Question 20

global business

Answer 20

encompasses everything
(+)desire for living green=new businesses in the global environment
(-)war and terrorism

Question 21

In a business, what should be prioritized

Answer 21

-quality and service

Question 22

circular economy

Answer 22

keeps products in the value circle to aim not to produce waste

Question 23

e-commerce

Answer 23

buying and selling goods over the internet
business to consumer (B2C)

Question 24

database

Answer 24

electronic storage file of information

Question 25

demography

Answer 25

stats of human population in terms of size, density, age, race, gender, etc.

Question 26

globalization

Answer 26

growing due to efficient distribution systems and communication systems (how trade is becoming global)

Question 27

Greening

Answer 27

-saving energy and producing products that harm the environment less