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  1. Define: goods
    Tangible products such as computers, food, clothing, cars, and appliances (p. 4)
  2. Define: services
    Intangible products (i.e., products that can't be held in your hand) such as education, health care, insurance, recreation, and travel and tourism (p. 4)
  3. Define: business
    Any activity that seeks to provide goods and services to others while operating at a profit (p. 4)
  4. Define: entrepreneur
    A person who risks time and money to start and manage a business (p. 4)
  5. Define: revenue
    The total amount of money a business takes in during a given period by selling goods and services (p. 5)
  6. Define: profit
    The amount of money a business earns above and beyond what it spends for salaries and other expenses (p. 5)
  7. Define: loss
    When a business's expenses are more than its revenues (p. 5)
  8. Define: risk
    The chance an entrepreneur takes of losing time and money on a business that may not prove profitable (p. 5)
  9. Define: standard of living
    The amount of goods and services people can buy with the money they have (p. 6)
  10. Define: quality of life
    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 (p. 6)
  11. Define: stakeholder
    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 (p. 6)
  12. Define: outsourcing
    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 (p. 6)
  13. Define: nonprofit organization
    An organization whose goals do not include making a personal profit for its owners or organizers (p. 7)
  14. Define: factors of producture
    The resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge (p. 9)
  15. Define: business environment
    The surrounding factors that either help or hinder the development of businesses (p. 11)
  16. Define: technology
    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 (p. 14)
  17. Define: productivity
    The amount of output you generate given he amount of input (e.g., hours worked) (p. 14)
  18. Define: e-commerce
    The buying and selling if goods over the Internet (p. 14)
  19. Define: database
    An electronic storage file for information (p. 15)
  20. Define: identity theft
    The obtaining of individuals' personal information, such as Social Security and credit card numbers, for illegal purposes (p. 15)
  21. Define: empowerment
    Giving frontline workers the responsibility, authority, freedom, training, and equipment hey need to respond quickly to customer requests (p. 17)
  22. Define: demography
    The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income (p. 17)
  23. Define: climate change
    The movement of the temperature of the planet up and down over time (p. 19)
  24. Define: greening
    The trend toward saving energy and producing products that cause less harm to the environment (p. 19)
Card Set
key terms from chapter one - Nickels, W.G., 2010. Understanding Business. McGraw-Hill Companies, Inc: New York. ed9, p. 2-27.
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