Chapter 1: Managing Within the Dynamic Business Environment Flashcards
Profit
The amount of money a business earns above and beyond what it spends for salaries and expenses
Business
Any activity that seeks to provide goods and services to others while operating at a profit
Entrepreneur
A person who risks time and money to start and manage a business
Revenue
The total amount of money a business takes in during a given period by selling goods and services
Loss
A business’s expenses are more than its revenue
Standard of living
The amount of goods and services people can buy with the money they have
Risk
The chance an entrepreneur takes of losing time and money on business that may not be profitable
Quality of life
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
Stakeholders
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
Nonprofit organization
One whose goals do not include making a personal profit for its owners or organizers
Factors of production
Land, labor, capital, entrepreneurship, and knowledge
Business environment
The surrounding factors that either help or hinder the development of business
- Economic and legal environment
Freedom of ownership Contract laws Elimination of production Tradable currency Minimum taxes and regulation
- Technological environment
Information technology
Databases
Barcodes
The internet
- The competitive environment
Customer service
Stakeholder recognition
Employee service
Concern for the environment
- The social environment
Diversity
Demographic changes
Family changes
- The global business environment
Global competition
Free trade
Quality imperative
Technology
Everything that makes business processes more efficient and productive
Productivity
Amount of output you generate given the amount of input (hours worked)
E-commerce
Buying and selling goods over the internet
Database
Electronic storage file where info is kept
Empowerment
The resources and responsibility that firms give to their employees to meet the needs of customers
Demography
The statistical study of the human population with regard to size, density, and other characteristics
Goods
Tangible products such as computers, food, clothing, cars, and appliances
Services
Intangible products such as education, health care, insurance,recreation, travel, and tourism
