session 1 Flashcards
(23 cards)
What is Business?
The organization of tasks and functions that will produce a good or service with utility for customers and generates profit.
Why is Business important for society?
Creates and maintains jobs and individual standard of living.
What is Utility?
Primary and secondary uses of products, goods and services.
What are the Factors of Production?
- Land
- Labor
- Capital
- Entrepreneurship
- Technology
- Knowledge
Do all countries hold, support, or encourage the elements of production?
No.
What is Profit?
Business revenues that remain after separating expenses.
What is Revenue?
Total amount of money a business takes in during a given period by selling goods and services.
What is Loss?
When expenses are more than revenues.
What are some examples of expenses?
- Materials
- Building rental
- Tool rental
- Employee salaries
- Benefits
- Utility costs
What is Risk in business?
The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.
What is the most important item within business?
Time.
What are Entrepreneurs?
Individuals who accept business risk in hopes of rapid financial returns and expansion.
What traits do successful entrepreneurs typically have?
- Leverage opportunity
- Amazing people
What are Stakeholders?
Anyone involved in, or holds an interest in, a business.
What are examples of stakeholders?
- Employees
- Customers
- Vendors
- Investors
- Local community
What is Standard of Living?
The amount of goods and services individual people can buy with the amount of money they have or make.
What is Quality of Life?
Level of society’s overall well-being, including freedoms, access to education, health care, safety, and other aspects of life.
What are Nonprofit Organizations?
Organizations that are not driven to produce profit but focus on delivering a good or service for society.
How is Productivity linked to Technology?
Through e-commerce, databases, and distribution.
What constitutes the Business Environment?
Legal, technological, competitive, social, and global aspects.
What is the Globalization of Business?
The interdependence of national economies and markets defined by global capacities, not regional restraints.
