McGraw-Hill Understanding Business Chapter 1 Vocab
Business Environment Includes
1. Economic and Legal 2. Technological 3. Competitive 4. Social 5. Global Business
Entrepreneur
A person who risks time and money to start and manage a business.
Empowerment
Allowing workers to make other decisions essential to producing high-quality goods and services.
Nonprofit Organization
An organization whose goals do not include making a personal profit for its owners or organizers.
Business
Any activity that seeks to provide goods and services to others while operating at a profit.
E-Commerce
Buying and selling of goods online.
Business Environment
Consists of surrounding factors that either help or hinder the development of business.
Outsourcing
Contracting with other companies to do some or all of the functions of a firm, like its production or accounting tasks.
Factors of Production
Contribute to Wealth: Land, Labor, Capital, Entrepreneurship, and Knowledge.
Services
Intangible products. (Education, health care, insurance, etc.)
Technology
Means everything from phones and copiers to computers, mobile devices, medical imaging machines, and the various software programs and apps that make business processes more effective, efficient, and productive.
Climate Change
Movement of the temperature of the planet up or down over time.
Loss
Occurs when a business's expenses are more than its revenues.
Efficiency
Producing goods and services using the least amount of resources.
Effectiveness
Producing the desired results
Greening
Saving energy and producing products that cause less harm to the environment.
Demography
Statistical study of the human population with regard to size, density, race, age, gender, etc.
Goods
Tangible products. (Computers, food, clothing, etc.)
Standard of Living
The amount of goods and services people can buy with the money they have.
Profit
The amount of money a business earns above and beyond what it spends for salaries and other expenses needed to run the operation.
Productivity
The amount of output you generate given the amount of input, such as the number of hours your work.
Risk
The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.
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
The people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.
Revenue
Total amount of money a business takes in during a given period by selling goods and services.
