BUS 108 - CH. 1-2 Exam Questions and Answers With complete
solution–Expert Verified
Business: Any 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 (that can't be held in your hand) such as education, health care, insurance,
recreation, and travel and tourism
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
Expenses: Money needed to keep the business alive and operate
Profit: Amount of money a business earns above and beyond what it spends on 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, amount of leisure, and rewards that add to the satisfaction and joy that other goods
and
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, services provide
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, like
production or accounting
For-Profit Organization: An organization whose goals include making personal profit for owners and
stockholders
Nonprofit organization: An organization whose goals do not include making a personal profit for its
owners or organizers. Use financial gains to meet social or educational goals
Five Factors of Production: Land or natural resources, Labor, Capital, Entrepreneurship, Knowledge
Business Environment: Economic and legal environment that promotes entrepreneurship and allows
private ownership and businesses
Technological Environment: Technology — from phones to computers, mobile devices, medical
imaging machines, robots, the Internet, artificial intelligence, social media, and the various software programs
and
apps that make business processes more effective, eflcient, and productive
Productivity: The amount of output you generate given the amount of input (for example, hours worked)
Competitive Environment: Competing to exceed customer expectations (Good quality; low price)
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solution–Expert Verified
Business: Any 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 (that can't be held in your hand) such as education, health care, insurance,
recreation, and travel and tourism
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
Expenses: Money needed to keep the business alive and operate
Profit: Amount of money a business earns above and beyond what it spends on 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, amount of leisure, and rewards that add to the satisfaction and joy that other goods
and
1/3
, services provide
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, like
production or accounting
For-Profit Organization: An organization whose goals include making personal profit for owners and
stockholders
Nonprofit organization: An organization whose goals do not include making a personal profit for its
owners or organizers. Use financial gains to meet social or educational goals
Five Factors of Production: Land or natural resources, Labor, Capital, Entrepreneurship, Knowledge
Business Environment: Economic and legal environment that promotes entrepreneurship and allows
private ownership and businesses
Technological Environment: Technology — from phones to computers, mobile devices, medical
imaging machines, robots, the Internet, artificial intelligence, social media, and the various software programs
and
apps that make business processes more effective, eflcient, and productive
Productivity: The amount of output you generate given the amount of input (for example, hours worked)
Competitive Environment: Competing to exceed customer expectations (Good quality; low price)
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