Module 1 Flashcards
What is the difference between for profit and nonprofit businesses?
For profit: make money, success measured in profit
Nonprofit: raise money, success is measure by how effectively services are provided
What are the key facets of business?
Profit! Revenue-expenses; generated by selling goods and services
How has the American economy evolved over time?
Agricultural, to industrial, to services (globalization)
How can business impact quality of life?
Create a higher standard of living due to the amount of goods and services available
What are the 4 ways business can advance the interests of society?
Producing goods and services, providing paychecks and benefits, paying taxes to support gov, donating to the community
Why are entrepreneurs important to the economy?
Because they drive innovation
What are the 5 factors of production?
Entrepreneurship, natural resources, capital, Human Resources, and knowledge
How does the factor of production, entrepreneurship,
apply to business?
it is the person that seeks a new opportunity in the market
How does the factor of production, natural resources, apply to business?
it is the production input that adds materials just as they are found in nature
How does the factor of production, capital, apply to a business?
buildings, machines, tools, and technology used to produce goods and searches; doesn’t include money
How does the factor of production, Human Resources, apply to a business?
labor, the physical and intellectual contribution of an employee
How does the factor of production, knowledge, apply to a business?
facts, information, skills acquired through training or education
What is the difference between the factor of production of Human Resource vs. Knowledge?
Human resource is labor; knowledge is facts and info acquired
How does the force of business, economic forces, effect a business?
Taxation, enforcing contracts
How does the force of business, Technology, effect a business?
things such as ecommerce, productivity, and security
How does the force of business, competition, effect a business?
the company will have rivals; forcing them to create a competitive advantage
How does the force of business, social forces, effect a business?
things such as age, gender, race; consumers taste changes
How does the force of business, global forces, effect a business?
trade pacts, military alliances, currency exchange
How does the force of business, legal/regulatory/political, effect a business?
businesses must abide by rules to stay out of trouble
What are the 6 forces of business?
Economic, technological, competitive, social, global, political
What are the types of stakeholders a business must recognize and satisfy?
Owners, customers, employees, suppliers, distributors, lenders, nearby communities, government regulators, interest groups, media
What are the 4 rights to private enterprise?
right to own property, right to profits after taxes, competition, freedom of choice
