Week 1 - Business Fundamentals Flashcards
What are goods?
What are services?
good are tangible products
services are intangible products
what is an entrepreneur?
a person who takes on the risk of and invests time and money into starting a business
definition of a business:
any activity that seeks to provide good and services and operates at a profit
What is venture capital?
money invested into a business (usually start up money), that is seen as having a strong growth potential
what is the difference between revenue and profit?
The difference between revenue and profit is that revenue is the money coming in from goods or services rendered by a business, whereas the profit is the money earned after all outgoing expenses for a business are taken care of. (profit is total costs subtracted from the total revenue)
what is risk for an entrepreneur?
Risk is the amount of time and money that an entrepreneur or business puts into their business without a guaranteed return on the time or money they invest. It is the degree of probability of loss and the amount of possible loss and it relates to profit because it is often said that the greater the risk is the greater the ‘reward’, which in this instance is profit. The more a business is willing to risk in terms of making decisions for the brand the higher the pay off can end up being. The less comfortable and willing a business is to take risks the less likely they are to succeed or see big success.
define ‘standard of living’?
Standard of living is the amount of money the average citizen makes vs the cost of living, it describes the level of comfort citizens have based on the amount of goods or services they can render with the money they have/earn mainly pertaining to basic needs and not luxury expenses. Whereas quality of life is based on the success or decline of their countries economy and the ability for its citizens to afford leisure and luxury items
who are stakeholders in a business?
Stakeholders define anybody involved in or affected by a business and its success and operations such as government, employees, customers,retailers, suppliers, etc. Offshoring pertains to the functions that a business may have provided to them by another company abroad such as accountants or lawyers. Outsourcing is when a business’s functions are carried out by a business or company outside of the organization (the outsource is still within the same country). Insourcing is when a company uses resources it has and skills required to provide function to outside companies for a fee.
what is ‘quality of life’?
the general well being of citizens based on political factors, good and services, natural environment, education, health care, safety, amount of leisure, and rewards to add to the satisfaction that other goods ans services provide.
how do lobbyists and trade unions helps businesses?
They help businesses influence government policies (that benefit them often at the cost of citizens) based on their associations with the business and the benefits they reap from helping the business.
what is offshoring?
offshoring is sourcing part of the purchased inputs outside of the country
what is insourcing?
insourcing is assigning various functions of a business that could go to an outside company to employees in the company
what is outsourcing?
outsourcing is assigning various functions of a business that could be given to employees within the company to outside companies.
how does outsourcing and offshoring affect local communities?
they take away jobs from locals
what is a social entrepreneur?
someone who uses business principles to start and manage non-profit organizations and help address social issues.
