Understanding Business 12th edition
chapters 1 & 2 .
Understanding Business 12th edition
chapters 1 & 2 .
Business - ANSWER any activity that seeks to provide gooods and services to others while operating at a
profit.
goods - ANSWER Tangible products such as computers, food, clothing, cars, and appliances.
services - ANSWER intangible products such as education, health care, insurance, recreation, and travel
and tourism
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 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 (2) the chance of loss, the degree of probability of loss, and the possible amount of loss
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, health care, safety, amount of leisure, and rewards that add to the satisfaction
and joy that other goods and services provide.
, Understanding Business 12th edition
chapters 1 & 2 .
stakeholders - ANSWER 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 - ANSWER Contracting with other companies (often in other countries) to do some or all of
the functions of a firm, like its production or accounting tasks.
nonprofit organization - ANSWER an organization whose goals do not include making a personal profit
for its owners or organizers
factors of production - ANSWER Resources that are used to create wealth: land labor capital
entrepreneirship and knowledge.
business environment - ANSWER the surrounding factors that either help or hinder the development of
businesses (economic&legal, technological, competitive, social)
Technology - ANSWER everything from phones to comptuers, medical imaging devices, copier, make
business more efficient and productive
productivity - ANSWER the amount of output you generate given the amount of input(e g hours worked)
e-commerce - ANSWER the buying and selling of goods over the internet
database - ANSWER an electronic storage file for information
identity theft - ANSWER the obtaining of individuals' personal information, such as Social Security and
credit card numbers, for illegal purposes
empowerment - ANSWER giving frontline workers the responsibility, authority, freedom, training, and
equipment they need to respond quickly to customer requests
chapters 1 & 2 .
Understanding Business 12th edition
chapters 1 & 2 .
Business - ANSWER any activity that seeks to provide gooods and services to others while operating at a
profit.
goods - ANSWER Tangible products such as computers, food, clothing, cars, and appliances.
services - ANSWER intangible products such as education, health care, insurance, recreation, and travel
and tourism
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 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 (2) the chance of loss, the degree of probability of loss, and the possible amount of loss
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, health care, safety, amount of leisure, and rewards that add to the satisfaction
and joy that other goods and services provide.
, Understanding Business 12th edition
chapters 1 & 2 .
stakeholders - ANSWER 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 - ANSWER Contracting with other companies (often in other countries) to do some or all of
the functions of a firm, like its production or accounting tasks.
nonprofit organization - ANSWER an organization whose goals do not include making a personal profit
for its owners or organizers
factors of production - ANSWER Resources that are used to create wealth: land labor capital
entrepreneirship and knowledge.
business environment - ANSWER the surrounding factors that either help or hinder the development of
businesses (economic&legal, technological, competitive, social)
Technology - ANSWER everything from phones to comptuers, medical imaging devices, copier, make
business more efficient and productive
productivity - ANSWER the amount of output you generate given the amount of input(e g hours worked)
e-commerce - ANSWER the buying and selling of goods over the internet
database - ANSWER an electronic storage file for information
identity theft - ANSWER the obtaining of individuals' personal information, such as Social Security and
credit card numbers, for illegal purposes
empowerment - ANSWER giving frontline workers the responsibility, authority, freedom, training, and
equipment they need to respond quickly to customer requests
