Chapter 1: Taking Risks and Making Profits within the Dynamic Business Environment – Flashcards

any activity that seeks to provide goods and services to others while operating at a profit.

TANGIBLE products such as computers, food, clothing, cars, and appliances. (Physical)

INTANGIBLE products (i.e., products that can't be held in your hand) such as education, health care, insurance, recreation and travel and tourism. (Nonphysical)

is a person who risks time and money to start and manage a business.

is the total amount of money a business takes in during a given period by selling goods and services.

is the amount of money a business earns above and beyond what it spends for salaries and other expenses needed to run the operation.

it occurs when a business's expenses are more than its revenues. If a business loses money over time, it will likely have to close, putting its employees out of work.

is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable. *Big Risk can mean Big Profits

the amount of goods and services people can buy with the money they have.

are all the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address. Including: Customers, employees, stockholders etc.

contracting with other companies (Often in Other countries) to do some on all of the functions of a firm, like its production or accounting tasks.

an organization whose goals do not include making a personal profit for its owners or organizers. They often strive for financial gains, but they use them to meet their social or educational goals than for personal profit.

1) Land: making homes, cars and other products 2) Labor: People having important resource in producing goods and services 3) Capital: Money is used to buy factors of production 4) Entrepreneurship: 5) Knowledge:

Everything from phones and copiers to computers, mobile devices, medical imagining machines and the various software programs and apps that make business processes more effective and efficient and productive.

the amount of output you generate given the amount of input, such as the number of hours you work.

the buying and selling of goods online. Two major types of e-commerce transactions: 1) Business-to-consumer (B2C) 2) Business-to-Business (B2B)

an electronic storage file for information

is the statistical study of the human population with regard to its size, density and other characteristics such as age, race, gender and income.

True, because there are not enough entrepreneurs to create jobs for all of its people.

they lack entrepreneurship and knowledge to use the other resources effectively.

surrounding factors that either help or hinder the development of businesses

1) The economic and legal environment 2) The technological environment 3) The competitive environment 4) The social environment 5) The global business environment

adapt to the changes around them

those with fewer resources are able to compete with large companies through the internet.

most responsive to customer wants and need

globalization of trade

China and India

average income level of people

acting with consideration for groups such as seniors, the disabled, homosexuals and others.