UAB BUS 102 - Test 1 Study Guide - Chapters 1-5 (Elizabeth Turnbull) Latest Questions With Passed Solutions!!

Value - the relationship between the price of a good or service and the benefits that it offers its 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. Revenue - Expenses = Profit (or Loss) Loss - when a business incurs expenses that are greater than its revenue Entrepreneurs - people who risk their time, money, and other resources to start and manage a business 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 Nonprofits - business-like 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 Business Environment - the setting in which a business operates. 5 key environments: economic, competitive, technological, social, and globalBusiness Technology - any tools - especially computers, telecommunications and other digital products - that businesses can use to become more efficient and effective E-commerce - business transactions conducted online, typically via the internet Demographics - the measurable characteristics of a population. Demographic factors: population size and density, age, gender, race, education, and income Discuss the role of business in the economy - Successful businesses create wealth, which increases the standard of living for virtually all members of society