Taking risk and making profits within a dynamic business environment

Taking risk and making profits within a dynamic business environment 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 your hand) such as education, healthcare, insurance, recreation, and travel and tourism. entrepreneur - answer-A person who risk 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 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, healthcare, safety, amount of leisure, and rewards that add to the satisfaction and joy that other goods and services provide. 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. kinds of stakeholders - answer-Stockholders, customers, surrounding community, environmentalist, dealers (retailers), employees, government leaders, suppliers, media, and bankers. Often the needs of a firm's various stakeholders will conflict. i.e., paying employees more may cut into stockholders profits. Balancing such demands are a major role of business managers. outsourcing - answer-Contracting with other companies (often in other countries) to do some or all of the functions of a firm, like its production and accounting task. insourcing - answer-Foreign companies setting up design and production facilities in the country in which they will sell their products. nonprofit organization - answer-An organization whose goals do not include making a personal profit for its owners or organizers. goals of nonprofit organizations - answer-focus on social and educational, not profit oriented. good management principles - answer-must be used by nonprofits to meet their objectives and goals. factors of production - answer-resources used to create wealth. -land, labor, capital, entrepreneurship, and knowledge. land - answer-property and other natural resources used to make homes, cars, & other products. labor - answer-the work of people. It has been an important resource in producing goods and services, but many are now being replaced by technology. capital - answer-machines, tools, buildings, and other means of manufacturing. entrepreneurship - answer-process of starting a business or other organization by risking money and time. knowledge - answer-a level of specific expertise required for business success. business environment - answer-surrounding factors that either help or hinder the development of businesses. Factors are 1. economic & legal environment 2. technological environment 3. competitive environment 4. social environment and 5. the global business environment. economic & legal environment - answer-1. freedom of ownership, 2. contract laws, 3. elimination of corruption, 4. tangible currency, 5. minimum taxes and regulations. technological environment - answer-1. information technology, 2. databases, 3. barcodes, and 4. the Internet. competitive environment - answer-1. customer service, 2. stakeholder recognition, 3. employee service, 4. concern for the environment. social environment - answer-1. diversity, 2. demographic changes, 3. family changes. global environment - answer-1. global competition, 2. free trade, 3. the quality imperative. Uniform Commercial Code - answer-regulates business agreements like contracts and warranties technology - answer-Everything from phones and copiers to computers, medical imaging devices, personal digital assistants, and the various software programs that make business processes more effective, efficient, and productive. Effectiveness - answer-producing the desired results. Efficiency - answer-producing goods and services using the least amount of resources. 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's requests. demography - answer-The statistical study of the human population with regards 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. greening - answer-The trend toward saving energy and producing the products that cause less harm to the environment.