PF Intro to Business Ch1 Vocab Flashcards
Profit
is the amount of money a business earns above and beyond what it pays out for salaries and other expenses.
profit is over and above the money you pay yourself in salary
Revenue
is the total amount of money a business takes in during a given period by selling goods and services.
Loss
occurs when a business’ expenses are more than its revenues
Entrepreneur
A person who owns and operates his or her own business.
Standard of living
quality and qty of products available to people and how these goods are distributed over the population
Risk
the chance an individual or organization takes of losing time and money on a business that ma not prove profitable
Reward
the gratification as a result of some action
Stakeholders
all the people who stand to gain or lose from the policies and activities of a business
include customers, employees, stockholders, suppliers, bankers, people in general surrounding the community and elected government leaders
Shareholder
in contrast to a stakeholder is a person who actually owns stock in a company
Stock
is an intangible piece of ownership in a company
Services
intangible products (products that can’t be held in your hand) such as education, health care, insurance, recreation, and travel and tourism
Today the leading firms are in services: legal, health, telecommunications, entertainment and financial industries
Five parts of business
- Economic and legal environment
- Technological environment
- Competitive environment
- Social environment
- Global environment
ROI
money gained from taking a business venture risk - in addition to money investment of time is also an important consideration for businesspeople
Uniform Comercial Code (UCC)
covers things like contracts and warranties
comprehensive set of commercial laws adopted by every state in the US covering sales laws and other commercial laws
Tradable Currency
money that is allowed to be exchanged for another country’s money
Board of Directors
group that oversees the activities of a corporation
Capitalist System
companies and businesses are owned by citizens instead of the government
Technological environment
Technology encompasses all those things that make business processes more effective, efficient and productive
Effectiveness
producing the desired results
Efficiency
producing goods using the least amount of resources
Productivity
amount of output you generate given the amount of input (i.e. hours worked)
Resource
something used in the production of goods
e-Commerce
buying and selling goods over the internet
Business-to-consumer (B2C)
a business that produces products to sell directly to the consumer
Business-to-Business (B2B)
a business that produces products to sell directly to other businesses
Uniform Product Codes (UPC)
a series of lines and numbers you see on most consumer packaged goods identifying the type of product
Database
an electronic storage file where information is kept
Economic and legal environment
part of entrepreneurs’ risk involves the economic system and how government works with or against business
Includes ROI, Uniform Comercial Code (UCC), Tradable Currency, board of directors, capitalist system
Competitive environment
goal for many companies is zero defects
Includes Value, empowerment, cross-functional teams
Value
relative worth, merit or importance
offering both high quality products and outstanding service at competitive prices
customers require both high quality and high value
Empowerment
to give power or authority
Cross-functional Teams
group of people working with different expertise working together to achieve a common goal
Social environment
Includes diversity,
Diversity
broad difference between people (ethnicity, gender, color, sexual orientation, body size, age)
Business are concerned with having a diverse work force for two reasons: a. business can better serve customers with a diverse workforce b. diverse work environment brings about new fresh ideas and perspectives
Factors in diverse workforce Aging consumers Dual incomes Single parents Marriage
Global environment
Two important changes in recent years have been 1)growth of international competition and 2)increase in free trade among nations
Includes free trade
Free Trade
reduction of barriers to trade, such as elimination of tariffs on goods brought into another country
Two ways to succeed in a business
a) work for others, gain skills and work up the ladder
advantages - job diversity, growth and advancement, flexibility, develop broad set skills
b) start your own business
advantage - be your own boss
Creation of wealth
there are 5 factors that contribute to wealth
what makes countries rich is a combination of the last two factors - entrepreneurship and knowledge
5 Factors of Production
a) Land
land and other natural resources are used to make homes, cars and other products
b) Labor
people have always been an important resource in producing goods and services but many people are now being replaced by technology
c) Capital
includes machines, tools, buildings and other means of manufacturing
d) Entrepreneurship
all the resources in the world have little value unless entrepreneurs are willing to take the risk of starting businesses to use those resources
e) Knowledge
information technology has revolutionized business - making it possible to quickly determine wants and needs and to respond with desired goos and services
Non-Profit Organization
an organization whose goals do not include making a personal profit for its owners and organizers but rather the alleviation of some social problem
Social Entrepreneur
are people who use business principles to start and manage organizations that are not for profit
