Intro to Business (week one notes)

Business

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

Goods

Tangible products that can be physically touched and handled.

Services

Intangible products that cannot be held physically, such as education, healthcare, or tourism.

Percentage of businesses that are service-based

$$75\%$$

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.

Profit

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

Loss

Occurs when a business's total expenses are greater than its total revenues.

Proportion of small businesses that fail within the first 5 years

$$50\%$$

Risk in business

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 the money they have.

Quality of life

The general well-being of a society in terms of political freedom, safety, education, healthcare, and environmental quality.

Stakeholders

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