Unit: Business Basics Note Taking Outline

Profit

The money left after a business pays its expenses.

Revenue

Money that a business brings in from sales.

Expenses

Money that a business pays out.

Fill in the Blank: Profit formula = __________.

Revenue - Expenses

Goods

Physical, tangible products a business sells that satisfy customer needs and wants.

Services

Intangible products bought or sold that satisfy customer needs and wants.

Wants

Things we wish we could have.

Needs

Things necessary for our survival.

Nonprofit Organizations

Organizations that do not operate to make a profit, providing services to the community.

Factors of Production

Resources a business uses to produce goods and services.

Labor

People; human resources that contribute to a business’s production.

Natural Resources

Raw materials used to produce goods and services.

Capital

Physical facilities and financial money used to produce goods and services.

Entrepreneur

Someone who assumes the risk of creating, organizing, and operating a business.

Intellectual Property

Intangible assets developed as a result of intellect and creativity.

Scarcity

Condition where humans have unlimited wants but limited resources.

Opportunity Cost

The loss of potential gain from other alternatives when one is chosen.

Competition

The struggle between businesses to attract scarce customer dollars.

Globalization

A movement towards a more connected world economy; movement of products across borders.

Technological Changes

Innovations that significantly impact business efficiency and productivity.

Local Business

Businesses that rely on local consumers.

Regional Business

Businesses that operate in a wider area than local but not national or international.

National Business

Businesses that have several locations throughout the country.

Multinational Business

Businesses that operate in more than one country.

Four Main Types of Businesses

Local, Regional, National, Multinational.