chapter 1 - Summary

Question 1

The importance of key business fundamentals to Wealth Generation

Answer 1

A business is any activy that seeks to provide goods and services to others while operating at a profit

Question 2

What is the relationship between risk and profit loss?

Answer 2

profit
- is money a business earns above and beyond the money that it spends on salaries and other expenses

Business people make profits by taking risks…

risks are the chance an entrupernuner takes of losing time and money in a business that may not be profitable
- loss occurs when business costs and expenses are higher than its revenue

Question 3

What are business stakeholders

Answer 3

The goal of business leaders is to try to recognize and respond to the needs of these stakeholders and still make a profit

stakeholders include
- costumers
- employees
- shareholders
- suppliers
- dealers
- bankers
- the media
- people in the local community
- eviermentlistd
- elected government

Question 4

What are business stakeholders’ importance to non-profit organizations & business activities?

Question 5

How do non-profit organizations differ from profit-seeking organizations?

Answer 5

a non-profit organization is an organization whose goals do not include making a personal profit for its owners or organization.

Question 6

Which stakeholders are most important to a business

Answer 6

The goal of business leaders is to try to balance the needs of all the stakeholders and still make a profit.

• some businesses put the needs of shareholders above other interests, but most businesses today seek a balanced amount of the needs of the various stakeholders