Chapter 1 Vocab

Question 1

Business

Answer 1

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

Question 2

Goods

Answer 2

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

Question 3

Services

Answer 3

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

Question 4

Entrepreneur

Answer 4

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

Question 5

Revenue

Answer 5

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

Question 6

Profit

Answer 6

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

Question 7

Loss

Answer 7

When a business’s expenses are more than its revenue

Question 8

Risk

Answer 8

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

Question 9

Standard of living

Answer 9

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

Question 10

Quality of life

Answer 10

The general well-being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure, rewards that add to the satisfaction and joy that other goods and services provide.

Question 11

Stakeholders

Answer 11

All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.

Question 12

Outsourcing

Answer 12

Contracting with other companies (often in other countries) to do some or all of the functions of a firm, like its production or accounting tasks.

Question 13

Nonprofit Organization

Answer 13

An organization whose goals do not include making a personal profit for its owners or organizers.

Question 14

Factors of production

Answer 14

The resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge.

Question 15

Business environment

Answer 15

The surrounding factors that either help or hinder the development of businesses.

Question 16

Technology

Answer 16

Everything from phones and copiers to computers, medical imaging devices, personal digital assistants, and the various software programs that make business processes more effective, efficient and productive.

Question 17

Productivity

Answer 17

The amount of output you generate given the amount of input.

Question 18

e-commerce

Answer 18

The buying and selling of goods over the internet.

Question 19

Database

Answer 19

An electronic storage file for information.

Question 20

Identity theft

Answer 20

The obtaining of individuals’ personal information, such as Social Security and credit card numbers, for illegal purposes.

Question 21

Empowerment

Answer 21

Giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests.

Question 22

Demography

Answer 22

The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender and income.

Question 23

Climate change

Answer 23

The movement of the temperature of the planet up or down over time.

Question 24

Greening

Answer 24

The trend toward saving energy and producing products that cause less harm to the environment.