Chpt 1: Business Basics

Question 1

Profits

Answer 1

Earned when a company’s revenue exceeds its expenses

Question 2

Goods

Answer 2

the physical products offered by a business

Question 3

Services

Answer 3

the intangible products offered by a business

Question 4

Factors of Production

Answer 4

The resources used to create goods and services

Question 5

Business

Answer 5

Entity that offers product to its customers to earn a profit

Question 6

Competition

Answer 6

Arises when two or more businesses contend with one another to attract customers and gain an advantage

Question 7

e-commerce

Answer 7

The buying and selling of goods and services through the Internet

Question 8

Entrepreneur

Answer 8

An individual who takes on the risks of creating, organizing, and operating a business and directs all of a business’s resources

Question 9

Expenses

Answer 9

The money a business pays out

Question 10

Financial Capital

Answer 10

Money used to facilitate a business enterprise

Question 11

Globalization

Answer 11

A movement toward a more interconnected and interdependent world economy

Question 12

Green economy

Answer 12

An economy that factors ecological concerns into business decisions

Question 13

Identity theft

Answer 13

The illegal gain and use of other people’s personal information

Question 14

Intellectual Property

Answer 14

A creation of he mind, such as an idea, invention, literary, or other artistic work; can include symbols, names, images, and designs used in commerce such as patents, trademarks, copyrights, etc.

Question 15

Labor

Answer 15

A human resource that refers to any physical or intellectual work that people contribute to a business’s production

Question 16

Local Business

Answer 16

One-of-a-kind business that relies on local consumers to generate business

Question 17

Multinational Enterprise

Answer 17

A business that manufactures and markets products in two or more countries

Question 18

National Business

Answer 18

Businesses that have several outlets throughout a country but do not serve an international market

Question 19

Natural Resources

Answer 19

The raw materials provided by nature that are used to produce goods and services

Question 20

nonprofit organization

Answer 20

A business that does not pursue profits but instead seeks to service the community through social, educational, or political means

Question 21

offshoring

Answer 21

When businesses relocate their production facilities overseas or subcontracts at least some of the components of their products to foreign companies around the world to achieve lower manufacturing costs.

Question 22

Real Capital

Answer 22

The physical facilities used to produce goods and services

Question 23

Regional Business

Answer 23

A company that serves a wider area than local businesses but does not serve national or international markets

Question 24

Revenue

Answer 24

The amount of money generated by a business by either selling goods or performing services

Question 25

Social Environment

Answer 25

An interconnected system of different demographic factors, such as race, ethnicity, gender, identity, age, income distribution, sexual orientation, and other characteristics

Question 26

Social Networking Sites

Answer 26

Websites that make it easy for People to connect online for the purposes of building and supporting social relationships

Question 27

Supply Chain

Answer 27

The flow by which products, information, and money move between supplier and consumer

Question 28

Technology

Answer 28

Refers to items and services such as Smartphones, computer software, and digital broadcasting that make businesses more efficient and productive

Question 29

Telecommunte

Answer 29

Work from home or another location away from the office

Question 30

Undercapitalization

Answer 30

Occurs when a business owner cannot gain access to adequate funding