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Unformatted text preview: BMGT 110 CHAP. 1 05:34 Goods- tangible products such as computers, food, clothing, cars and appliances Services- intangible products such as education, health care, insurance, recreation, and travel and tourism Business- an activity that seeks to provide goods and services to others while operating at a profit Entrepreneur- a person who risks time and money to start and manage business Revenue- 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- when a business’s expenses are more than its revenues Risk-the chance an entrepreneur takes of losing time and money on a business that may not prove profitable Standard of living- the amount of goods and services people can buy with the money they have Quality of life- 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- 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-contracting with other companies to do some or all of the functions of a firm, like its production or accounting tasks Nonprofit organization- organization whose goals do not include making a personal profit for its owners or organizers. Do not strive for financial gains, but they use them to meet their social or educational goals rather than for personal profit. Business environment- the surrounding factors that either help or hinder the development of businesses Five factors of production- land, labor, capital, entrepreneurship, and knowledge. Creating the right atmosphere sets the success for business. Economic and legal environment, technological environment, competitive environment, social environment, global business environment One way for gov to actively promote entrepreneurship is to allow private ownership of business; best thing for gov to do is to minimize the interference with the free exchange of goods and services. Technology has changed the way we communicate with one another Productivity – the amount of output you generate given the amount of input E-commerce-the buying and selling of goods over the Internet. B2C AND B2B Due to database, identity theft becomes possible Businesses can meet and beat competition: Competing by exceeding expectations Competing by restructuring empowerment Traditional business- Modern business- Customer satisfaction delighting the customer Customer orientation customer stakeholder orientation Profit orientation profit and social orientation Reactive ethics proactive ethics Product orientation quality and service orientation Managerial focus customer focus Social Environment Demography- the statistical study of the human population with regard to its size, density, and other...
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