Understanding Business Chapter 1

Understanding Business Chapter 1 - 5 Global business...

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Understanding Business Chapter 1 (Managing within the Dynamic Business Environment: Taking Risks and Making Profits) Entrepreneur – person who risks time and money to start and manage a business Risk – chance an entrepreneur takes of losing time and money on a business that may not prove profitable Standard of living – amount of goods and services people can buy with the money they have Quality of life – general well-being of a society in terms of political freedom, clean natural environment, education, health care, safety, free time, and everything else that leads to satisfaction and joy Factors of production – land, labor, capital, entrepreneurship, knowledge Business environment – surrounding factors that either help or hinder the development of businesses 1. Economic and legal environment 2. Technological environment 3. Competitive environment 4. Social environment
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Unformatted text preview: 5. Global business environment Ways for government to promote entrepreneurship • Keep taxes and regulations to a minimum • Allow private ownership of businesses • Minimize interference with the free exchange of goods and services • Passing laws that enable business people to write contracts that are enforceable in court • Establish a currency that’s tradable in world markets • Minimize corruption Productivity – amount of output you generate given the amount of input Database – electronic storage file where information is kept Empowerment – giving the frontline workers the responsibility, authority, and freedom to respond quickly to customer requests Demography – statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, income...
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This note was uploaded on 09/23/2008 for the course AEM 1200 taught by Professor Perez,p.d. during the Fall '06 term at Cornell.

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