BUSINESS BAP064Introduction to Business Summary

1. Describe the relationship between profit and risk, and show how businesses and nonprofit organizations can raise the standard of living for all. A business is any activity that seeks to provide goods and services to others while operating at a profit. Goods are tangible products such as computers, food, clothing etc. and services are intangible products such as education. 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 / makes during a given period by selling their goods and/or services. Profit is the amount of money a business earns above and beyond what is spends for salaries and other expenses needed to run the operation. A loss occurs when a business’s expenses are more than its revenues.