(12) Chapter 1 Taking Risks and Making Profits within the Dynamic Business Environment

Dynamic Business Environment

A business environment that changes rapidly.

Profit

The amount of money a business earns after it pays all its bills.

Risk

The time and money invested by entrepreneurs when starting a business.

Entrepreneurship

The process of starting and managing a business to make a profit.

Revenue

The total amount of money a business takes in during a given period.

Goods

Tangible products that can be touched or held, like food and clothing.

Services

Intangible products that cannot be touched, like repairs or maintenance.

Stakeholder

Anyone who stands to gain or lose from the activities of a business.

Outsourcing

Contracting with other companies to complete some of a firm’s functions.

Non-Profit Organization

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

Social Change

The societal shifts that can impact how businesses operate.

Quality of Life

The general well-being of society in terms of education, health care, and safety.

Standard of Living

The amount of goods and services people can buy with the money available to them.

Empowerment

Granting employees the authority to make decisions that affect their work.

Economic Environment

The surrounding factors that influence business operations and profitability.

Competitive Environment

The market dynamics that affect a company's market position and competition.

Technological Environment

Factors related to technology that facilitate or hinder business operations.

Demography

The statistical study of human populations concerning size, density, and characteristics.

Globalization

The process by which businesses develop international influence or operate on an international scale.

Climate Change

Environmental shifts that necessitate business adaptations for sustainability.

Five Factors of Production

Land, labor, capital, entrepreneurship, and knowledge necessary for creating wealth.

Market Needs

The demands and requirements that consumers have for goods and services.

Efficiencies in Production

Optimizing resources to enhance output and reduce waste in manufacturing.

Perseverance

The continued effort to do or achieve something despite difficulties.

Identity Theft

The unauthorized use of someone else's personal information for illicit purposes.