Chapter 1

Question 1

What is a profit?

Answer 1

Money that business earns in sales minus the expenses

Question 2

Define entrepreneurs

Answer 2

People who risk their time, money and other resources to start and manage a business

Question 3

History of business

Answer 3

Industrial revolution: mid 1700’s and mid 1800’s, technological advances fueled rapid industrialization in america. Mass production and specialization of labor

Entrepreneurship era : large scale entrepreneurs emerged and built business empires

Production era: business refined production process and created greater efficiencies

Marketing era : business began to develop brands to help consumers understand the differences among different products

Relationship era : aim to build a long term relationship with customers

Question 4

Nonprofits

Answer 4

Contribute to the economy without any financial gain

Question 5

Four factors of production

Answer 5

Natural resources
Capital
Human Resources
Entrepreneurship

Question 6

The business environment

Answer 6

Economic environment
Social environment
Global environment
Competitive environment
Technological environment