BUS 110- Chapter 1

business

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

services

-intangible products

-education, healthcare, insurance, recreation, travel, and tourism

goods

-tangible products

-computers, food, clothing, cars, appliances

entrepreneur

a person who risks time and money to start and manage a business

revenue

total amount of money a business takes in during a given period by selling goods and services

profit

amount of money a business earns above what it spends

risk

chance of losing time and money on a business that may not prove profitable

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.

outsourcing

contracting with other companies to do some or all the functions of a firm

nonprofit organization

goals do not include personal profit for owners. Often strive for personal gain but use them to meet social/educational goals

standard of living

amount of goods and services people can buy with the money they have

quality of life

general well-being of a society

five factors of production

1. Land

2. Labor

3. Capital

4. Entrepreneurship

5. Knowledge