Topic 1 (Ch. 1-2) Flashcards
Define business
Any activity that seeks to provide goods and services to others, while operating at a profit
Define goods
Tangible products, such as computers, food, clothing, cars and appliances
Define services
Intangible products, such as education, healthcare, insurance, recreation, etc.
Define entrepreneur
A person who risks time and money to start and manage a business
Define revenue
The total amount of money, a business takes, and during a given period by selling goods and services
Define profit
The amount of money a business earns above and beyond what it spends for salaries and other expenses
Standard of living
The amount of goods and services people can buy with the money they have
Quality of life
The general well-being of a society in terms of its political freedom, natural environment, education, healthcare, safety, etc.
Define stakeholders
All of the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address
Factors of production
The resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge
Examples of business environment
Economic and legal environment, technological environment, competitive environment, the social environment, and the global business environment
Define productivity
The amount of output you generate given the amount of input
Define e-commerce
The buying and selling of goods over the Internet
Define empowerment
Giving Frontline workers a responsibility, authority, freedom, training, and equipment. They need to respond quickly to customer requests
Define demography
The statistical study of the human population with regard to size density, and other characteristics, such as age, race, gender, and income
Define economics
The study of how society chooses to employ resources to produce goods and services, and distribute them for consumption among various competing groups and individuals
Macro economics
The part of economics study that looks at the operation of a nations economy as a whole
Micro economics
The part of economic study that looks at the behavior of people and organizations in particular markets
Invisible hand
A phrase coined by Adam Smith to describe the process that turns self-directed getting into social and economic benefits for all
Define capitalism
An economic system, in which all are most of the factors of production and distribution are privately owned and operated for profit