MIE 201 Exam 1 Latest Version with Complete Solutions

MIE 201 Exam 1 Latest Version with Complete Solutions business any profit-seeking organization that provides goods and service designed to satisfy customers needs revenue money a company brings in through the sales of goods and services business model a clearly stated outline of how the business intends to generate revenue profit money left over after all the costs involved in doing business have been deducted from revenue competition gives customers a wider range of options, it tends to increase quality, improve customer service and lower prices competition advantage some aspect of a product or company that makes it more appealing to target customers linking of risk and reward is important because businesses wouldn't have incentives to take risks without rewards and to encourage smart and responsible decision making moral hazard irresponsible and unethical behavior not-for-profit organizations organizations that provide good and services without having a profit motive good-producing business create value by making things, most of which are tangible service business companies that create value by performing activities that deliver some benefit to customers barrier to entry any resource or capability a company must have before it can start competing in a given market ex) money, gov't approval, limited supplies business contributes to society by offering good and services, providing employment, paying taxes, contributing to national growth, stability and security negative effects of business in society generating pollution and creating waste, creating health and safety risks, disrupting communities and causing financial instability social entrepreneurs people who apply entrepreneurial