The Importance of Entrepreneurs to the Creation of Wealth Flashcards
What are the five factors of production?
- Land (natural resources)
- Labor (workers)
- Capital
- Entrepreneurship
- Knowledge
What two factors contribute significantly to the wealth of rich countries today?
Entrepreneurship and knowledge.
What is a patent?
A formalized right protecting knowledge.
How are intangible assets typically evaluated?
Based on the expectation of profit.
What is “exclusive identifiability” in branding?
The elements that define a brand, such as font, colors, and shapes.
What is the business environment?
The surrounding factors that help or hinder the development of businesses.
Name the five elements of the business environment.
- Economical and legal environment
- Technological environment
- Competitive environment
- Social environment
- Global business environment
What is included in the economical and legal environment?
Rules enforcing private ownership, minimizing interference, enforceable contracts, tradable currency, and minimizing corruption.
What does the technological environment encompass?
Resources and tools that improve business processes, including e-commerce.
How can businesses compete in a competitive environment?
By exceeding customer expectations and restructuring/empowering their workforce.
What aspects are studied in the social environment?
Demographics, managing diversity, and promoting inclusion and belonging.
What has contributed to the growth of the global business environment?
Efficient distribution and communication systems, like the internet.
What is the difference between B2C and B2B?
Business-to-consumer (B2C) involves selling directly to consumers, while business-to-business (B2B) involves transactions between businesses.
