Business Principles BUSI 1301 Exam 1 questions with correct answers

Business - Answer Any activity that seeks to provide goods and services to others while operating at a profit. Entrepreneur - Answer A person who risks time and money to start and manage a business. Revenue - Answer The total amount of money a business takes in during a given period by selling goods and services. Profit - Answer The amount of money a business earns above and beyond what it spends for salaries and other expenses. Loss - Answer Occurs when a business's expenses are more than its revenues. Risk - Answer The chance an entrepreneur takes of losing time and money on a business that may not prove profitable. Do Businesses take risks? - Answer Yes, but with great risks could come great profit. Risk should match profit potential. Standard of Living - Answer The amount of goods and services people can buy with the money they have. Quality of Life - Answer The general well-being of a society in terms of its political freedom, natural environment, education, healthcare, safety, amount of leisure and rewards that add to personal satisfaction.