exam 1 review

exam 1 review - EXAM 1 REVIEW CHAPTER 1 Terms Goods...

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EXAM 1 REVIEW CHAPTER 1 Terms Goods – tangible products such as computers, food, clothing, cars, and appliances 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 Business – any 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 a business Revenue – the total amount of money is 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, health care, 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 (often in other countries) to do some or all of the functions of a firm, like its production or accounting tasks Empowerment – giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests Demography – the statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income Ideas/Theories Factors of production 1. Land 2. Labor 3. Capital 4. Entrepreneurship 5. Knowledge (Most Important!!) The Business Environment 1. Economic and Legal 2. Technological 3. Competitive 4. Social 5. Global Business
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CHAPTER 3 Terms Importing – buying products from another country Exporting – selling products to another country Free Trade – the movement of goods and services among nations without political or economic barriers Balance of Trade – the total value of a nation’s exports compared to its imports measured over a particular period Trade Surplus – a favorable balance of trade; occurs when the value of a country’s exports exceeds that of its imports Trade Deficit – an unfavorable balance of trade; occurs when the value of the country’s imports exceeds that of its exports Dumping – selling products in a foreign country at lower prices than those charged in the producing country Multinational Corporation – an organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management Trade Protectionism – the use of government regulations to limit the import of goods
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exam 1 review - EXAM 1 REVIEW CHAPTER 1 Terms Goods...

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