Understanding Business by Nickels:
Chapters 1-4 Study Guide Latest
Edition.
Chapter 1 - Answer Chapter 1
business - Answer Any activity that seeks to provide goods 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 (i.e. products that can’t be held in our hand) 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 b
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.
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.
, outsourcing - Answer Contracting with other companies (often in other countries) to do some
or all of the function 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 The resources used to create wealth: land, labor, capital,
entrepreneurship, and knowledge.
business environment - Answer The surrounding factors that either help or hinder the
development of business.
technology - Answer Everything from phones and copiers to computers, mobile devices,
medical imaging machines, and the various software programs and apps that make business
processes more effective, 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 front-line workers the responsibility, authority, freedom,
training, and equipment they need to respond quickly to customer requests.
demography - Answer The statistical study of the human population with regard to its size,
density, and other characteristics such as age, race, gender, and income.
climate change - Answer The movement of the temperature of the planet up or down over
time.
Chapters 1-4 Study Guide Latest
Edition.
Chapter 1 - Answer Chapter 1
business - Answer Any activity that seeks to provide goods 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 (i.e. products that can’t be held in our hand) 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 b
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.
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.
, outsourcing - Answer Contracting with other companies (often in other countries) to do some
or all of the function 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 The resources used to create wealth: land, labor, capital,
entrepreneurship, and knowledge.
business environment - Answer The surrounding factors that either help or hinder the
development of business.
technology - Answer Everything from phones and copiers to computers, mobile devices,
medical imaging machines, and the various software programs and apps that make business
processes more effective, 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 front-line workers the responsibility, authority, freedom,
training, and equipment they need to respond quickly to customer requests.
demography - Answer The statistical study of the human population with regard to its size,
density, and other characteristics such as age, race, gender, and income.
climate change - Answer The movement of the temperature of the planet up or down over
time.
