Chapter 1 Flashcards
(15 cards)
Business
Any organization or activity that provides goods or services in an effort to earn a profit.
Profit
The money that a business earns in sales (or revenue), minus expenses, such as cost of goods, and cost of salaries.
Loss
When a business incurs expenses that are greater than its revenue
Entrepreneur
People who risk their time, money, and other resources to start and manage a business.
Standard of living
The quality and quantity of goods and services available to a population.
Quality of life
The overall sense of well-being experienced by either an individual or a group.
Nonprofits
Business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain.
Factors of production
Four fundamental elements - natural resources, capital, human resources, and entrepreneurship - that businesses need to achieve their objectives.
Business environment
The setting in which business operates. The five key components are: economic environment, technological environment, social environment, and global environment.
Speed-to-market
The rate at which a new product moves from conception to commercialization.
Business technology
Any tools - especially computers, telecommunications, and other digital products - that businesses can use to become more efficient and effective.
E-commerce
Business transactions conducted online, typically via the Internet.
Demographics
The measurable characteristics of a population. Demographic factors include population size and density, as well as specific traits such as age, gender, and race.
Free trade
An international economic and political movement designed to help goods and services flow more freely across international boundaries.
Value
The relationship between the price of a good or a service and the benefits that it offers its customers.
