Understanding Business Chapter 1

business

Any activity that seeks to provide goods and services to others while operating at a profit.

profit

The amount of money a business earns above and beyond what it spends for salaries and other expenses.

entrepreneur

A person who risks time and money to start and manage a business.

revenue

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

loss

When a business's expenses are more than its revenues.

risk

The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.

Standard Of Living

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

Quality Of Life

The general well-being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time, and everything else that leads to satisfaction and joy.

stakeholders

All the people who stand to gain or lose by the policies and activities of a business.

Nonprofit Organization

An organization whose goals do not include making a personal profit for its owners or organizers.

Factors Of Production

The resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge.

Business Environment

The surrounding factors that either help or hinder the development of business.

technology

Everything from phones and copiers to computers, medical imaging devices, personal digital assistants, and the various software programs that make business processes more efficient and productive.

productivity

The amount of output you generate given the amount of input (e.g., hours worked).

e-commerce

The buying and selling of goods over the internet.

database

An electronic storage file where information is kept; one use of databases is to store vast amounts of information about consumers.

empowerment

Giving frontline workers the responsibility, and freedom to respond quickly to customer requests.

demography

The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income.

goods

Tangible products such as computers, food, clothing, cars, and appliances.

services

Intangible products (i.e., products that can't be held in your hand) such as education, health care, insurance, recreation, and travel and tourism.

outsourcing

assigning various functions, such as accounting, production, security, maintenance, and legal work to outside organizations

Climate Change

the movement of the temperature of the planet up or down over time

Greening

The trend toward saving energy and producing products that cause less harm to the environment

Identity Theft

the obtaining of individuals' personal information, such as Social Security and credit card numbers, for illegal purposes