Intro Flashcards
What is the relationship between money and flows?
Money is dependent on flows of profit and revenue.
How do annual reports relate to business performance?
They provide insights into a business’s financial health, including profits and losses.
Define “business.”
Any activity that seeks to provide goods and services to others while operating at a profit.
What are the two main types of products in business?
Goods (tangible products) and services (intangible products).
How can successfully filling a market need impact wealth building?
It can generate profit for the entrepreneur.
Who is an entrepreneur?
A person who risks time and money to start and manage a business.
What is revenue?
The total amount of money a business takes in during a given period by selling goods and services.
Define profit.
The amount of money a business earns above and beyond what it spends on salaries and other expenses.
What constitutes a loss for a business?
When a business’s expenses exceed its revenues.
What is a stakeholder?
Individuals or groups who stand to gain or lose by a business’s activities, including employees, shareholders, and investors.
What is a primary challenge for businesses regarding stakeholders?
Recognizing and responding to the needs of stakeholders.
What do employees typically want from their workplace?
Deeper connections, radical flexibility, personal growth, holistic well-being, and shared purpose.
How does reputation affect profit?
A positive reputation can enhance profits, while negative consequences can reduce profitability.
What is outsourcing?
Contracting with other companies, often abroad, to perform certain business functions.
What is insourcing?
When foreign companies open design and production facilities in the US.
