Chapter 1 Taking Risks And Making Profit

Question 1

Services

Answer 1

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

Question 2

Entrepreneur

Answer 2

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

Question 3

Revenue

Answer 3

Total amount of money that is received during a given period for goods sold, services rendered and other financial sources

Question 4

Profit

Answer 4

Amount a business earns above and beyond what it spends for salaries and other expenses

Question 5

Loss

Answer 5

When a business’s expenses are more than its revenues

Question 6

Risks

Answer 6

Refers to the chance of loss, the degree of probability of loss and amount of possible loss

Question 7

Standard of living

Answer 7

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

Question 8

Quality of life

Answer 8

General well being of 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

Question 9

Stakeholders

Answer 9

All the people who could lose or gain from a business

Question 10

Offshoring

Answer 10

Sourcing part of the purchased inputs outside the country

Question 11

Outsourcing

Answer 11

Assigning functions such as accounting, production, security, maintenance, and legal work to outside company’s

Question 12

Regulations

Answer 12

Restrictions provincial or federal laws placed on businesses with respect to the conduct of their activities

Question 13

Productivity

Answer 13

Amount of output that generated given the amount of input

Question 14

Goods

Answer 14

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