Taking Risks and Making Profits within the Dynamic Business Environment

Vocabulary flashcards derived from the lecture on Business and Wealth Building, covering key definitions and concepts related to entrepreneurs, business environments, and the economy.

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

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, including land, labor, capital, entrepreneurship, and knowledge.

Business Environment

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

Economic Environment

The part of the business environment that includes factors such as ownership freedoms, contract laws, and minimum regulations.

Technological Environment

Everything from phones to computers that make business processes more effective and productive.

E-commerce

The buying and selling of goods over the Internet.

Demography

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

Empowerment

Giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests.