Chapter 1: Intro to Business Flashcards
Goods vs Services
-tangible vs non tangible items
entrepreneur
someone who takes risks (money and time) to manage or start a business
revenue
money gathered from the selling a good or service
profit
revenue>expenses
loss
expenses>revenue
standard of living
how much it costs to survive in a given area
quality of life
well being of a society of people
stakeholders
people who stand to gain or lose by the policies of a business (consumers, investors, etc.)
outsourcing
contracting other companies to spread out the workload of a particular company
Advantages/disadvantages of being an entrepreneur
-A: freedom to succeed, make own choices, wealth
-D: failure, no fringe benefits
since the mid 1980s what sector has generated the most increases in employment
service
what must companies to do be competitive in today’s market?
-offer high quality products and outstanding service at competitive prices
government might do what to encourage entrepreneurial growth
pass laws that enable businesspeople to write contracts that are enforceable in court (no differing policies)
Factors of production and examples
-land
-labor
-capital
-entrepreneurship ability (knowledge)
-technology
5 types of business environments
Economic and legal
Technological
social
global
competitive
Economic and Legal environment (how the government can promote entrepreneurship)
(+)freedom to choose and start your own business
(-)high taxes
Also: minimum taxes/regulation, tradable currency, minimize trade barriers
Technological environment
(+) the internet, bar codes, data bases, information technology
(-) identity theft is a challenge
social environment
(+)wealthy senior citizens, diversity and inclusion, demographic changes, family changes
(-)decrease in social contributions
competitive environment:
-exceeding consumer expectations and giving frontline workers the power to respond to customer request
-customer service, stakeholder recognition, employee service, concern for the environment
global business
encompasses everything
(+)desire for living green=new businesses in the global environment
(-)war and terrorism
In a business, what should be prioritized
-quality and service
circular economy
keeps products in the value circle to aim not to produce waste
e-commerce
buying and selling goods over the internet
business to consumer (B2C)
database
electronic storage file of information
demography
stats of human population in terms of size, density, age, race, gender, etc.
globalization
growing due to efficient distribution systems and communication systems (how trade is becoming global)
Greening
-saving energy and producing products that harm the environment less
