Business ch1 powerpoint

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

Insourcing

When foreign companies open 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 five resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge.

Economic Environment

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

Technological Environment

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

E-commerce

The buying and selling of goods over the Internet.

Empowerment

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

Demography

The statistical study of the human population regarding size, density, and characteristics such as age, race, and income.

Globalization

The process of businesses expanding to serve global markets.

Climate Change

The movement of the temperature of the planet up or down over time.

Greening

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