Bus 101: Introduction to Business — Vocabulary Flashcards

Vocabulary flashcards covering key terms from Bus 101: Introduction to Business (Chapter 1).

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.

Business

An 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.

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, environment, education, health care, safety, leisure, and rewards that add to satisfaction.

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 (often in other countries) to do some functions of a firm.

Insourcing

Foreign companies opening design and production facilities in the United States; the reverse of outsourcing.

Nonprofit Organization

An organization whose goals do not include making a personal profit for owners; uses gains to meet social or educational goals.

Land

Natural resources used to produce goods and services.

Labor

Workers who contribute to production.

Capital

Manufactured aids to production such as tools, equipment, and facilities.

Entrepreneurship

The risk-taking ability to combine the other factors to create wealth.

Knowledge

Information, skills, and know-how used in production.

Five Factors of Production

The five resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge.

Economic and Legal Environment

Part of the business environment focusing on laws, property rights, contracts, and currency stability.

Technological Environment

The impact of technology, including information technology, databases, bar codes, and the Internet.

Competitive Environment

Factors involving competition for customers, stakeholder recognition, employee service, and concern for the environment.

Social Environment

Demography, diversity, family changes, and managing a diverse workforce.

Global Business Environment

Worldwide forces affecting business, including free trade and global competition.

E-commerce

The buying and selling of goods online (Business-to-Consumer and Business-to-Business).

Database

An electronic storage file for information.

Identity Theft

The obtaining of individuals’ personal information for illegal purposes.

Demography

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

Managing Diversity

Creating a workplace that promotes inclusion and belonging.

Gen Z

Generation born 1995–2009; the largest group of consumers; marketers target them.

Influencers

Brand ambassadors who promote products on social media.

Information Age

An information-based global and technical revolution; a large portion of a company’s value is in intellectual capital; innovation is encouraged.

Intellectual Capital

The knowledge and intangible assets that contribute to a company’s value.

Productivity

The amount of output generated per unit of input.

P&L (Profit & Loss) Statement

A financial statement summarizing revenues and expenses.