Business Lecture Notes Vocabulary

Flashcards for vocabulary review based on lecture notes.

Business

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

Goods

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

Services

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

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

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 the money they have.

Quality of life

The general well-being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure that add to the satisfaction and joy of the population.

Stakeholders

All the constituencies that are affected by the decisions and actions of a business or could affect the same.

Outsourcing

Contracting with other companies (often in other countries) to do some of the functions of a firm, like production or accounting.

Insourcing

Many foreign companies are opening offices and factories in the United States

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.

Business environment

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

Technology

Everything from phones to computers and the various software programs that make business processes more effective, efficient, and productive.

Effectiveness

Producing the desired result.

Efficiency

Producing goods and services using the least amount of resources.

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 for information.

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 as age, race, gender, and income.

Creation of wealth

Requires the efforts of entrepreneurs and the skill and knowledge to produce goods and services.