bmgt study guide

bmgt study guide - CHAPTER ONE Vocabulary Revenue - The...

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Unformatted text preview: CHAPTER ONE Vocabulary Revenue - The total amount of money a business takes in during a given period by selling goods and services. Profit - The amount of money a business earns above and beyond what it spends for salaries and other expenses. Loss - Occurs when a business’ expenses are more than its revenues. Risk - The chance an entrepreneur or business takes of losing time and money on a business that may not prove profitable. Stakeholders - All the people who stand to gain or lose by the policies and activities of a business and whose concerns the businesses need to address. Outsourcing - Contracting with other companies (often in other countries) to do some of the firm’s functions I nsourcing- Foreign companies opening offices and factories in the United States. What’s the difference between revenue and profit? Revenue is the total amount of money a business takes in during a given period by selling goods and services and profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses What’s the difference between standard of living and quality of life? Standard of living refers to the amount of goods and services people can buy with the money they have. Quality of life refers to 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. What’s risk? How is it related to profit? Risk is the chance an entrepreneur or business takes of losing time and money on a business that may not prove profitable. It relates to profit because there needs to be certain amount of risk taken in order to make money and ultimately make a profit from it. What do the terms stakeholders, outsourcing and insourcing mean? Stakeholders -All the people who stand to gain or lose by the policies and activities of a business and whose concerns the businesses need to address....
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This note was uploaded on 02/14/2011 for the course BMGT 110 taught by Professor Nelson during the Spring '08 term at Maryland.

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bmgt study guide - CHAPTER ONE Vocabulary Revenue - The...

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