Foundations of Business Flashcards
(19 cards)
Entrepreneurs
those who take the risks and reap the rewards associated with starting a new business enterprise
Business
a business is an activity that provides goods or services to consumers for the purpose of making a profit
Revenue
the funds an enterprise receives in exchange for its goods and services
Profit
what is left after all the bills are paid
Owners
role is to invest money in the business
Employees
work for the company and help reach its goal
Customers
people who buy the product
Stakeholders
those with a legitimate interest in the success or failure in the business it adopts.
ex: funders, policy makers, suppliers, shareholders, service users, employees, owners, customers.
Functional areas
the activities needed to operate a business can be divided. (Management, marketing, finance)
Management
involves planning for, organizing, leading, and controlling a company’s resources so it can achieve its goals
Operations manager
the person who designs and overseas the transformation of resources into goods or sevices
Marketing
consists of everything that a company does to identify customers’ needs and design products to meet those needs
Accountants
measure, summarize, and communicate financial and managerial information and advise other managers on financial matters
Finance
involves planning for, obtaining, and managing a company’s funds
Economy
a strong economy means people have more money to eat out
Government
food standards are maintained by a government agency, the FDA
Consumer trends
preferences for certain types of foods are influenced by consumer trends
Enviornmental
business have responded to environmental concerns by getting rid of Styrofoam containers
PESTEL
Political (impact of government)
Economic (inflation, employment rates)
Sociocultural (age, race, income, Change in taste)
Technological (internet, devices)
Environment (natural resources, pollution, carbon footprints)
Legel (labor and consumer protection, equity, product safety)
