Smartbook #2
A business is any activity that seeks to provide goods and services to others while operating at a profit.
To earn that profit, you provide goods, jobs, and services to people or other businesses
Goods= tangible products (computers, food, clothing, etc)
Services= intangible products (can’t be held in your hand)
Nearly 30 million millionaires in the United States
an entrepreneur is a person who risks time and money to start and manage a business
Revenue is the total amount of money a business takes in during a given period by selling goods and services
Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses needed to run the operation
Loss occurs when a business’s expenses are more than its revenues.
If a business loses money over time, it will likely have to close
Around 50% of small businesses close in the first 5 years
Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable.
Businesses and their employees pay taxes on all levels to pay for hospitals, playgrounds, roads, and etc
A nations businesses are part of an economic system that contributes to the standard of living and quality of life for everyone in their country
Standard of Living: the amount of goo 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, etc that add to the satisfaction and joy that other goods and services provide
Stakeholders: people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address (includes customers, suppliers, bankers, etc)
A primary challenge for organizations is to recognize and respond to the needs of their stakeholders
Outsourcing: contracting with other companies to do some or all of the functions of a firm, like its production or accounting
Nonprofit Organization: organization whose goals do not include making a personal profit for its owners or organizers
they strive for financial gain, but try to meet their social or educational goals