Chapters 1 & 2 Flashcards
an activity that seeks to provide goods and services to others while operating at a profit
business
tangible products such as computers, food, clothing, cars, and appliances
goods
intangible products (products that can’t be held in you hands) such as education, health care, insurance, recreation, and travel and tourism
services
a person who risks time and money to start and manage a business
entrepreneur
the total amount of money a business takes during a given period by selling goods and services
revenue
the amount of money a business earns above and beyond what it spends for salaries and other expenses
profit
when a business’s expenses are more than its revenues
loss
the chance an entrepreneur takes of losing time and money on a business that may not prove profitable
risk
the amount of goods and services people can buy with the money they have
standard of living
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
quality of life
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
stakeholders
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
outsourcing
an organization whose goals do not include making a personal profit for its owners or organizers
nonprofit organization
the resources used to create wealth: land, labor, capitol, entrepreneurship, and knowledge
factors of production
the surrounding factors that either help or hinder the development of businesses
business environment
everything from phones and copiers to computers, mobile devices, medical imaging machines, and the various software programs and apps that make business processes more effective, efficient, and productive
technology
the amount of output you generate given the amount of input (hours worked)
productivity
the buying and selling of goods over the internet
e-commerce
an electronic storage file for information
database
the obtaining of individuals’ personal information, such as Social Security and credit card numbers, for illegal purposes
identity theft
giving frontline workers the responsibility, authority, freedom, training, and equipment the need to respond quickly to customer request
empowerment
the statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income
demography
the movement of the temperature of the planet up or down over time
climate change
the trend toward saving energy and producing products that causes less harm to the environment
greening