Chapter 1 | Profit and Risk Flashcards
Business
Any activity that seeks to provide goods and services to others while operating at a profit.
Goods
Tangible Products (Computers, food, clothing, cars, etc.)
Services
Intangible Products
Entrepreneur
Person Who Risks Time and money to start and manage a business
Revenue
Total Amount of money a business takes in during a given period by selling goods and services.
Profit
The aamount of money a business earns above what it spends for salaries and expenses
Loss
When a businesses’ expenses are more than it revenues
Risk
The chance an entrepreneur takes of losing time and money on a business that may not prove profitable
Standard of Living
Refers to the amount of goods and services people can buy with the money they have
Quality Of Life
Refers to the general well-being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure, and rewards that add to the satisfaction and joy that other goods and services provide.
Stakeholders
Everyone who stands to gain or lose by the policies and activities of a business and whose concerns the business needs to address. Customers, Employees, Stakeholders, suppliers, dealers (retailers), bankers, etc.
Outsourcing
Contracting with other companies to do some or all of the functions of a firm, like production or accounting tasks.
Nonprofit Organization
An Organization whose goals do not include making a personal profit for its owners or organizers.
The Business environment
Surrounding factors that either help or hinder the development of business
Productivity
The amount of output you generate given the amount of input
