PF Intro to Business Ch1 Vocab

Question 1

Profit

Answer 1

is the amount of money a business earns above and beyond what it pays out for salaries and other expenses.
profit is over and above the money you pay yourself in salary

Question 2

Revenue

Answer 2

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

Question 3

Loss

Answer 3

occurs when a business’ expenses are more than its revenues

Question 4

Entrepreneur

Answer 4

A person who owns and operates his or her own business.

Question 5

Standard of living

Answer 5

quality and qty of products available to people and how these goods are distributed over the population

Question 6

Risk

Answer 6

the chance an individual or organization takes of losing time and money on a business that ma not prove profitable

Question 7

Reward

Answer 7

the gratification as a result of some action

Question 8

Stakeholders

Answer 8

all the people who stand to gain or lose from the policies and activities of a business
include customers, employees, stockholders, suppliers, bankers, people in general surrounding the community and elected government leaders

Question 9

Shareholder

Answer 9

in contrast to a stakeholder is a person who actually owns stock in a company

Question 10

Stock

Answer 10

is an intangible piece of ownership in a company

Question 11

Services

Answer 11

intangible products (products that can’t be held in your hand) such as education, health care, insurance, recreation, and travel and tourism

Today the leading firms are in services: legal, health, telecommunications, entertainment and financial industries

Question 12

Five parts of business

Answer 12

1. Economic and legal environment
2. Technological environment
3. Competitive environment
4. Social environment
5. Global environment

Question 13

ROI

Answer 13

money gained from taking a business venture risk - in addition to money investment of time is also an important consideration for businesspeople

Question 14

Uniform Comercial Code (UCC)

Answer 14

covers things like contracts and warranties

comprehensive set of commercial laws adopted by every state in the US covering sales laws and other commercial laws

Question 15

Tradable Currency

Answer 15

money that is allowed to be exchanged for another country’s money

Question 16

Board of Directors

Answer 16

group that oversees the activities of a corporation

Question 17

Capitalist System

Answer 17

companies and businesses are owned by citizens instead of the government

Question 18

Technological environment

Answer 18

Technology encompasses all those things that make business processes more effective, efficient and productive

Question 19

Effectiveness

Answer 19

producing the desired results

Question 20

Efficiency

Answer 20

producing goods using the least amount of resources

Question 21

Productivity

Answer 21

amount of output you generate given the amount of input (i.e. hours worked)

Question 22

Resource

Answer 22

something used in the production of goods

Question 23

e-Commerce

Answer 23

buying and selling goods over the internet

Question 24

Business-to-consumer (B2C)

Answer 24

a business that produces products to sell directly to the consumer

Question 25

Business-to-Business (B2B)

Answer 25

a business that produces products to sell directly to other businesses

Question 26

Uniform Product Codes (UPC)

Answer 26

a series of lines and numbers you see on most consumer packaged goods identifying the type of product

Question 27

Database

Answer 27

an electronic storage file where information is kept

Question 28

Economic and legal environment

Answer 28

part of entrepreneurs’ risk involves the economic system and how government works with or against business Includes ROI, Uniform Comercial Code (UCC), Tradable Currency, board of directors, capitalist system

Question 29

Competitive environment

Answer 29

goal for many companies is zero defects Includes Value, empowerment, cross-functional teams

Question 30

Value

Answer 30

relative worth, merit or importance offering both high quality products and outstanding service at competitive prices customers require both high quality and high value

Question 31

Empowerment

Answer 31

to give power or authority

Question 32

Cross-functional Teams

Answer 32

group of people working with different expertise working together to achieve a common goal

Question 33

Social environment

Answer 33

Includes diversity,

Question 34

Diversity

Answer 34

broad difference between people (ethnicity, gender, color, sexual orientation, body size, age) Business are concerned with having a diverse work force for two reasons: a. business can better serve customers with a diverse workforce b. diverse work environment brings about new fresh ideas and perspectives ``` Factors in diverse workforce Aging consumers Dual incomes Single parents Marriage ```

Question 35

Global environment

Answer 35

Two important changes in recent years have been 1)growth of international competition and 2)increase in free trade among nations Includes free trade

Question 36

Free Trade

Answer 36

reduction of barriers to trade, such as elimination of tariffs on goods brought into another country

Question 37

Two ways to succeed in a business

Answer 37

a) work for others, gain skills and work up the ladder advantages - job diversity, growth and advancement, flexibility, develop broad set skills b) start your own business advantage - be your own boss

Question 38

Creation of wealth

Answer 38

there are 5 factors that contribute to wealth | what makes countries rich is a combination of the last two factors - entrepreneurship and knowledge

Question 39

5 Factors of Production

Answer 39

a) Land land and other natural resources are used to make homes, cars and other products b) Labor people have always been an important resource in producing goods and services but many people are now being replaced by technology c) Capital includes machines, tools, buildings and other means of manufacturing d) Entrepreneurship all the resources in the world have little value unless entrepreneurs are willing to take the risk of starting businesses to use those resources e) Knowledge information technology has revolutionized business - making it possible to quickly determine wants and needs and to respond with desired goos and services

Question 40

Non-Profit Organization

Answer 40

an organization whose goals do not include making a personal profit for its owners and organizers but rather the alleviation of some social problem

Question 41

Social Entrepreneur

Answer 41

are people who use business principles to start and manage organizations that are not for profit