Chapter 1: Understanding Business
Test Guide Latest Update.
business - Answer Any activity that seeks to provide goods and services to others while
operating at a profit.
profit - Answer The amount of money a business earns above and beyond what it spends for
salaries and other expenses.
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.
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 money
they have.
Quality Of Life - Answer The general well-being of a society in terms of political freedom, a
clean natural environment, education, health care, safety, free time, and everything else that
leads to satisfaction and joy.
stakeholders - Answer All the people who stand to gain or lose by the policies and activities of
a business.
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.
Test Guide Latest Update.
business - Answer Any activity that seeks to provide goods and services to others while
operating at a profit.
profit - Answer The amount of money a business earns above and beyond what it spends for
salaries and other expenses.
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.
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 money
they have.
Quality Of Life - Answer The general well-being of a society in terms of political freedom, a
clean natural environment, education, health care, safety, free time, and everything else that
leads to satisfaction and joy.
stakeholders - Answer All the people who stand to gain or lose by the policies and activities of
a business.
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.
