Goods
Tangible products such as computers. food, clothing, cars, and appliances.
Services
Intangible (i.e., products that can't be held in your hands) such as education, health care, insurance, recreation, and travel and tourism.
Business
Any activity that seeks to provide goods and services to others while operating at profit.
Entrepreneur
A person who risks time and money to start and manage a business.
Sam Walton
Founder of Walmart. He opened his first store in Arkansas and, over time became one of the richest people.
Venture Capitalist
Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses
Revenue
The total amount of money a business takes in during a given period by selling goods and services.
Profit
The amount of money a business earns above and beyond what is spends for salaries and other expenses needed to run the operation.
Loss
Occurs when a business's expenses are more than its revenues. If a business loses money over time, it will likely have to close, putting its employees out of work.
Risk
The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.
Denis O' Brien
Founder of Digicel. Makes billions of dollars selling cell phones in the poorest, most violent countries in the world. He make a big profit by taking a big risk.
Standard of living
The amount of goods and services people can buy with the money they have.
Quality of life
Refers to 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.
Stakeholder
All the people who stand to gain o lose by the policies and activities of a business whose concerns the business needs to address. They include customers, employees, stockholders, suppliers, dealers (retailers), bankers people in the surrounding community
Outsourcing
Contracting with other companies (often in other countries) to do some or all the functions of a firm, like its production or accounting tasks.
Outsourcing has had serious consequences in some states where jobs have bees lost to overseas competitors.
Nonprofit organization
An organization whose goals do not include making a personal profit for its owners or organizers. Nonprofit organization often so strive for financial gains, but they use them to meet their social or educational goals rather than for personal profit.
Social entrepreneurs
People whose use business principles to start and manage non-for-profits and help address social issues.
Ie. Muhammad Yunus of Grameen bank.
Five (5)Factors of Production
1. Land (or natural resources).
2. Labor (workers).
3. Capital (This includes machines, tolls, buildings, or whatever else is used to buy factors of production but is not always considered a factor by itself).
4.Entrepreneurship.
5. Knowledge.
Peter Drucker
Management expert and business consultant who emphasize that knowledge is one of important factor of production.
Five (5) business evironment
1. The economic and legal environment.
2. The technological environment.
3. The competitive environment.
4. The social environment.
5. The global business environment.
Business environment
The surrounding factors that either help or hinder the development of businesses.
Example of the economic and legal environment in business environment.
1. A government can minimize spending and keep taxes and regulations to a minimum, policies that tend to favor 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 effective, efficient, and productive.
Productivity
The amount of output you generate given the amount of input. (e.g. hour worked)
e-commerce
the buying and selling of goods over the internet.
Two major types of e-commerce transaction.
1. B2C (Business to costumers)
2. B2B (Business to Business)
Database
an electronic storage file for information.
Identity theft.
The obtaining of individuals personal information, such as social security and credit card numbers for illegal purposes.
Traditional Business Characteristic
1. Customer satisfaction
2. Customer orientation
3. Profit Orientation
4. Reactive ethnics
5. Product orientation
6. Managerial focus
Modern Businesses Characteristic.
1. Delighting the customer.
2. Customer and stakeholder orientation
3. Profit and social orientation
4. Proactive ethics
5. Quality ans service orientation.
6. Customer focus.
Empowerment
Giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests.
Demography
The statistical study of the human population with regard to its size, density, and other characteristics such age, gender, race, and income.
The richest demographic group in the USA
Ages 65 to 74
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 causes less harm to the environment.