UAB BUS 102 - Test 1 Study Guide -
Chapters 1-5 (Elizabeth Turnbull)
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 global
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
Business 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.
Explain the evolution of modern business - ✔️✔️The 5 distinct eras of United States
businesses: industrial revolution, entrepreneurship era, production era, marketing era,
and relationship era
The Industrial Revolution - ✔️✔️From the mid 1700s to the mid-1800s, technology field
a period of rapid industrialization. Factory spring up and cities, leading to mass
production and specialization of labor.
The Entrepreneurship Era - ✔️✔️During the second half of the 1800s, large-scale
entrepreneurs emerged, building business empires that created enormous wealth, but
often at the expense of workers and consumers.
The Production Era - ✔️✔️In the early 1900s, major businesses focused on further
refining the production process, creating huge efficiencies. The assembly line,
introduced in 1913, boosted productivity and lowered cost.
The Marketing Era - ✔️✔️After World War II, consumers began to gain power. As
goods and services flooded the market, the marketing concept emerged: a consumer-
first orientation as a guide to business decision making.
The Relationship Era - ✔️✔️With the technology boom in the 1900s, businesses began
to look beyond the immediate transaction, aiming to build a competitive edge through
long-term customer relationships.
Discuss the role of nonprofit organization in the economy - ✔️✔️Nonprofit
organizations often work hand-in-hand with business to improve the quality of life in our
society. Nonprofits our business like establishments that contribute to economic stability
and growth. Similar to businesses, nonprofit generate revenue and incur expenses.
Their goal is to use any revenue above and beyond expenses to advance the goals of
the organization, rather than to make money for its owners. Some non-profits - such as
museums, schools, and theatres - can act as economic magnets for communities,
attracting additional investment.
The core factors of production - ✔️✔️The four factors of production are the
fundamental resources that both businesses and nonprofits used to achieve their
objectives. Natural resources, capital, human resources, and entrepreneurship
Chapters 1-5 (Elizabeth Turnbull)
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 global
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
Business 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.
Explain the evolution of modern business - ✔️✔️The 5 distinct eras of United States
businesses: industrial revolution, entrepreneurship era, production era, marketing era,
and relationship era
The Industrial Revolution - ✔️✔️From the mid 1700s to the mid-1800s, technology field
a period of rapid industrialization. Factory spring up and cities, leading to mass
production and specialization of labor.
The Entrepreneurship Era - ✔️✔️During the second half of the 1800s, large-scale
entrepreneurs emerged, building business empires that created enormous wealth, but
often at the expense of workers and consumers.
The Production Era - ✔️✔️In the early 1900s, major businesses focused on further
refining the production process, creating huge efficiencies. The assembly line,
introduced in 1913, boosted productivity and lowered cost.
The Marketing Era - ✔️✔️After World War II, consumers began to gain power. As
goods and services flooded the market, the marketing concept emerged: a consumer-
first orientation as a guide to business decision making.
The Relationship Era - ✔️✔️With the technology boom in the 1900s, businesses began
to look beyond the immediate transaction, aiming to build a competitive edge through
long-term customer relationships.
Discuss the role of nonprofit organization in the economy - ✔️✔️Nonprofit
organizations often work hand-in-hand with business to improve the quality of life in our
society. Nonprofits our business like establishments that contribute to economic stability
and growth. Similar to businesses, nonprofit generate revenue and incur expenses.
Their goal is to use any revenue above and beyond expenses to advance the goals of
the organization, rather than to make money for its owners. Some non-profits - such as
museums, schools, and theatres - can act as economic magnets for communities,
attracting additional investment.
The core factors of production - ✔️✔️The four factors of production are the
fundamental resources that both businesses and nonprofits used to achieve their
objectives. Natural resources, capital, human resources, and entrepreneurship
