Lecture 1

Question 1

What is a Business?

Answer 1

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

Question 2

What are goods and services?

Answer 2

Goods - Tangible products
Services - Intangible Products

Question 3

Define Revenue, Profit and Loss

Answer 3

Revenue -> Total amount of money a business takes in during a given period of time

Profit -> Amount of money a business earns above and beyond what it spends

Loss -> when a business expenses are more than it’s revenue

Question 4

Define standard of living

Answer 4

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

Question 5

Define quality of life

Answer 5

The general well-being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure, and rewards that add to the satisfaction and joy that other goods and services provide

Question 6

What are stakeholders?

Answer 6

All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address

Question 7

Define outsorcing

Answer 7

Contracting with other companies (often in other countries) to do some functions of a firm, like production or accounting

Question 8

What are the 5 factors of production?
(lazy lions chase energetic kangaroos)

Answer 8

Land, labor, capital, entrepreneurship and knowledge

Question 9

What are the five factors for the Business Environment?
(Every Little Thing Can Succeed Globally)

Answer 9

Economic and Legal, technological, competitive, social, global business.