Taking Risks and Making Profits within the Dynamic Business Environment

This set of flashcards contains vocabulary terms and definitions related to the dynamic business environment, including concepts of entrepreneurship, stakeholders, economic factors, and the impacts of technology on business.

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 cannot 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, and leisure.

Stakeholders

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

Outsourcing

Contracting with other companies to do some of the functions of a firm, like production or accounting.

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, which include land, labor, capital, entrepreneurship, and knowledge.

Economic and Legal Environment

The surrounding factors that affect businesses, including laws, property rights, and regulatory framework.

Technological Environment

The technology that makes business processes more effective, efficient, and productive.

Competitive Environment

The factors that influence a business in terms of competition, such as customer service and stakeholder recognition.

Demography

The statistical study of human populations, including size, density, and characteristics like age and income.

Empowerment

Giving frontline workers the responsibility and authority to make decisions and respond quickly to customer requests.

Globalization

The process of interaction and integration among people, companies, and governments worldwide.

Climate Change

The movement of the temperature of the planet up or down over time, impacting environmental conditions.

Greening

The trend toward saving energy and producing products that cause less harm to the environment.