Business 101 - chapter 1-4
Business - ANS-Any activity that seeks to provide goods and services to others while
operating at a profit
revenue - ANS-the total amount of money a business takes in during a given period by
selling goods and services
Profit - ANS-The amount of money a business earns above and beyond what it spends
for salaries and other expenses
standart of living - ANS-The amount of goods and services people buy with the money
they have
quality of life - ANS-the general well being of a society in terms of it's 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.
Stakeholders - ANS-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.
factors of production - ANS-the resources used to create wealth: land, labor, capital,
entrepreneurship, and knowledge
factors of production - ANS-land, labor, capital, entrepreneurship and knowledge. Most
important entrepreneurship and knowledge
business environment - ANS-the surrounding factors that either help or hinder the
development of businesses
Way for the government foster entrepreneurship - ANS-Allow private ownership,
passing laws that allows businesses to enforce contracts, establish a currency that's
tradable in the world market, help minimize corruption in business
Productivity - ANS-The amount of output you generate given the amount of input (eg.
Hours worked)
Empowerment - ANS-Giving frontline workers the authority to respond quickly to
customer requests.
, Increase of number of citizens - ANS-People ages 65 to 74 are the richest in US
Greening - ANS-The trend toward saving energy and producing products that cause
less harm to the environment
Economics - ANS-The study of how society chooses to employ resources to produce
goods and services and distribute them for consumption among various competing
groups and individuals
Macroeconomics - ANS-The study of the economy as a whole
Microeconomics - ANS-The part of economics study that looks at the behavior of people
and organizations in particular market
Resource Development - ANS-The study of how to increase resources and create
conditions that will make better use of them.
invisible hand - ANS-A phrase coined by Adam Smith to describe the process that turns
self-directed gain into social and economic benefit for all
Capitalism - ANS-An economic system in which all or most of the factors of production
and distribution are privately owned and operated for profit
State capitalism - ANS-A combination of freer markets and some government control
Foundation of capitalism - ANS-The right to own private property, the right to own a
business and keep all profit, freedom of competition, freedom of choice ( choose where
and what they want to work)
free market - ANS-an economic system based on competition among businesses
without government interference
market price - ANS-the price determined by supply and demand
perfect competition - ANS-the degree of competition in which there are many sellers in a
market and none is large enough to dictate the price of a product such as agricultural
products
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