Chapter 1: Managing Within the Dynamic Business Environment

Question 0

Profit

Answer 0

The amount of money a business earns above and beyond what it spends for salaries and expenses

Question 1

Business

Answer 1

Any activity that seeks to provide goods and services to others while operating at a profit

Question 2

Entrepreneur

Answer 2

A person who risks time and money to start and manage a business

Question 3

Revenue

Answer 3

The total amount of money a business takes in during a given period by selling goods and services

Question 4

Loss

Answer 4

A business’s expenses are more than its revenue

Question 5

Standard of living

Answer 5

The amount of goods and services people can buy with the money they have

Question 6

Risk

Answer 6

The chance an entrepreneur takes of losing time and money on business that may not be profitable

Question 7

Quality of life

Answer 7

The general well being of a society in terms of political freedom, a clean natural environment, education, healthcare, safety, freedom, and everything else that leads to satisfaction and joy

Question 8

Stakeholders

Answer 8

Customers, employees, stockholders, suppliers, dealers, bankers, people in the surrounding community, environmentalists, and elected officials, all who stand to gain or lose by the policies and activities of a business

Question 9

Nonprofit organization

Answer 9

One whose goals do not include making a personal profit for its owners or organizers

Question 10

Factors of production

Answer 10

Land, labor, capital, entrepreneurship, and knowledge

Question 11

Business environment

Answer 11

The surrounding factors that either help or hinder the development of business

Question 12

1. Economic and legal environment

Answer 12

Freedom of ownership
Contract laws
Elimination of production
Tradable currency
Minimum taxes and regulation

Question 13

2. Technological environment

Answer 13

Information technology
Databases
Barcodes
The internet

Question 14

3. The competitive environment

Answer 14

Customer service
Stakeholder recognition
Employee service
Concern for the environment

Question 15

4. The social environment

Answer 15

Diversity
Demographic changes
Family changes

Question 16

5. The global business environment

Answer 16

Global competition
Free trade
Quality imperative

Question 17

Technology

Answer 17

Everything that makes business processes more efficient and productive

Question 18

Productivity

Answer 18

Amount of output you generate given the amount of input (hours worked)

Question 19

E-commerce

Answer 19

Buying and selling goods over the internet

Question 20

Database

Answer 20

Electronic storage file where info is kept

Question 21

Empowerment

Answer 21

The resources and responsibility that firms give to their employees to meet the needs of customers

Question 22

Demography

Answer 22

The statistical study of the human population with regard to size, density, and other characteristics

Question 23

Goods

Answer 23

Tangible products such as computers, food, clothing, cars, and appliances

Question 24

Services

Answer 24

Intangible products such as education, health care, insurance,recreation, travel, and tourism