Chapter 1: Managing Within the Dynamic Business Environment Flashcards Preview

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Flashcards in Chapter 1: Managing Within the Dynamic Business Environment Deck (25):
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Business

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

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Profit

The amount of money a business earns above and beyond what it spends for salaries and expenses

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Entrepreneur

A person who risks time and money to start and manage a business

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Revenue

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

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Loss

A business's expenses are more than its revenue

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Standard of living

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

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Risk

The chance an entrepreneur takes of losing time and money on business that may not be profitable

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Quality of life

The general well being of a society in terms of political freedom, a clean natural environment, education, healthcare, safety, freedom, and everything else that leads to satisfaction and joy

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Stakeholders

Customers, employees, stockholders, suppliers, dealers, bankers, people in the surrounding community, environmentalists, and elected officials, all who stand to gain or lose by the policies and activities of a business

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Nonprofit organization

One whose goals do not include making a personal profit for its owners or organizers

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Factors of production

Land, labor, capital, entrepreneurship, and knowledge

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Business environment

The surrounding factors that either help or hinder the development of business

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1. Economic and legal environment

Freedom of ownership
Contract laws
Elimination of production
Tradable currency
Minimum taxes and regulation

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2. Technological environment

Information technology
Databases
Barcodes
The internet

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3. The competitive environment

Customer service
Stakeholder recognition
Employee service
Concern for the environment

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4. The social environment

Diversity
Demographic changes
Family changes

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5. The global business environment

Global competition
Free trade
Quality imperative

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Technology

Everything that makes business processes more efficient and productive

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Productivity

Amount of output you generate given the amount of input (hours worked)

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E-commerce

Buying and selling goods over the internet

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Database

Electronic storage file where info is kept

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Empowerment

The resources and responsibility that firms give to their employees to meet the needs of customers

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Demography

The statistical study of the human population with regard to size, density, and other characteristics

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Goods

Tangible products such as computers, food, clothing, cars, and appliances

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Services

Intangible products such as education, health care, insurance,recreation, travel, and tourism