Business Now: Change Is the Only Constant

Vocabulary practice flashcards generated from Chapter 1 notes on business concepts, history, non-profits, factors of production, and the business environment.

Value

The relationship between the price of a good or a service and the benefits that it offers to customers.

Business

Any organization or activity that provides goods and services in an effort to earn a profit.

Profit

The money that a business earns in sales (or revenue), minus expenses, such as the cost of goods and the cost of salaries ($\text{Revenue} - \text{Expenses} = \text{Profit}$).

Loss

Occurs when a business incurs expenses that are greater than its revenue.

Standard of living

The quality and quantity of goods and services available to a population.

Quality of life

The overall sense of well-being experienced by either an individual or a group.

Industrial Revolution

An era in business history characterized by mass production, factories, work specialization, and efficiency.

Entrepreneurship Era

An era in business history characterized by industrial titans, wealth creation, an increase in living standards, manipulation/competition, and exploitation.

Production Era

An era in business history characterized by assembly lines, refining production, productivity gains, decreasing costs, hard selling, and no customer focus.

Marketing Era

An era in business history characterized by consumer power, growth in consumerism, product differentiation, and customer focus.

Relationship Era

An era in business history characterized by long-term relationships, satisfied customers, and the use of technology.

Nonprofits

Businesslike establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain.

Factors of production

Four fundamental elements—natural resources, capital, human resources, and entrepreneurship—that businesses need to achieve their objectives.

Natural resources

Inputs that offer value in their natural state.

Capital

Synthetic resources that a business needs to produce goods or services.

Human resources

Physical, intellectual, and creative contributions of everyone who works within an economy.

Entrepreneurship (Factor of Production)

The process of creating opportunities by harnessing other factors of production.

Business Environment

The context for business success, consisting of five key dimensions: Economic Environment, Social Environment, Competitive Environment, Global Environment, and Technological Environment.

Estimated US Consumer Population In 2026

A demographic projection where Gen Z is estimated to become the largest US consumer population at $82$ million, followed by Millennials ($80$ million), Baby boomers ($66$ million), Gen X ($65$ million), Gen Alpha ($43$ million), and the Silent generation ($14$ million).