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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.
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.
supply - ANSWER the quantity of products that manufacturers or owners are willing to sell at different prices at a specific time
demand - ANSWER the quantity of products that people are willing to buy at different prices at a specific time
market price - ANSWER the price determined by supply and demand
perfect competition - ANSWER 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
monopolistic competition - ANSWER the degree of competition in which a large number of sellers produce very similar products that buyers nevertheless perceive as different
oligopoly - ANSWER A degree of competition in which just a few sellers dominate the market
monopoly - ANSWER a degree of competition in which only one seller controls the total supply of a product or service, and sets the price
socialism - ANSWER an economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be more evenly distributed among the people
brain drain - ANSWER the loss of the best and brightest people to other countries
communism - ANSWER an economic and political system in which the government makes almost all economic decisions and owns almost all the major factors of production
free market economies - ANSWER economic systems in which the market largely determines what goods and services get produced, who gets them, and how the economy grows
chapters 1 & 2.
mixed economies - ANSWER Economic systems in which some allocation of resources is made by the market and some by the government
command economies - ANSWER economic systems in which the government largely decides what goods and services will be produced, who will get them, and how the economy will grow
GDP - ANSWER the total value of final goods and services produced in a country in a given year
Gross Output (GO) - ANSWER a measure of total sales volume at all stages of production
unemployment rate - ANSWER the number of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks
inflation - ANSWER a general rise in the prices of goods and services over time
disinflation - ANSWER a situation in which price increases are slowing (the inflation rate is declining)
deflation - ANSWER A situation in which prices are declining
stagflation - ANSWER A situation when the economy is slowing but prices are going up anyhow.
Consumer price index CPI - ANSWER monthly statistics that measure the pace of inflation or deflation
core inflation - ANSWER CPI minus food and energy costs
producer price index PPI - ANSWER An index that measures prices at the wholesale level.
business cycles - ANSWER the periodic rises and falls that occur in economies over time
