BUS110 CHAPTER 1
BUS110- CHAPTER 1
CHAPTER 1 SUMMARY
1.Describe the relationship between profit and risk, and show how businesses and nonprofits can raise the standard of living for all.
2.Compare and contrast being an entrepreneur and working for others.
3.Analyze the effects of the economic environment and taxes on businesses. 4.Describe the effects of technology on businesses.
CHAPTER 1 SUMMARY, CONTINUED
5.Demonstrate how businesses can meet and beat competition.
6.Analyze the social changes affecting businesses.
7.Identify what businesses must do to meet global challenges, including war and terrorism.
8.Review how past trends are being repeated in the present and what those trends mean for tomorrow’s college graduates.
GOODS VS. SERVICES
• Goods -- Tangible products such as computers, food, clothing, cars and appliances. • Services -- Intangible products (that can’t be held in your hand) like education, healthcare, insurance, recreation and travel.
• Successfully filling a market need means you could make money for yourself and provide jobs for others.
BUSINESS VS. ENTREPRENEUR
•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. •Success in business is often based on the strategy of finding a need and filling it.
•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’s
expenses are more than its revenues.
PROFIT/LOSS IN DIFFERENT
INDUSTRIES
WHAT IS RISK?
•Risk The chance an entrepreneur
takes of losing time and money on a business that may not prove profitable.
•GREATER THE RISK, GREATER THE
REWARD
RISK VS. REWARD
• What is the relationship between risk + reward? • The greater the risk, the greater
CHAPTER 1 SUMMARY
1.Describe the relationship between profit and risk, and show how businesses and nonprofits can raise the standard of living for all.
2.Compare and contrast being an entrepreneur and working for others.
3.Analyze the effects of the economic environment and taxes on businesses. 4.Describe the effects of technology on businesses.
CHAPTER 1 SUMMARY, CONTINUED
5.Demonstrate how businesses can meet and beat competition.
6.Analyze the social changes affecting businesses.
7.Identify what businesses must do to meet global challenges, including war and terrorism.
8.Review how past trends are being repeated in the present and what those trends mean for tomorrow’s college graduates.
GOODS VS. SERVICES
• Goods -- Tangible products such as computers, food, clothing, cars and appliances. • Services -- Intangible products (that can’t be held in your hand) like education, healthcare, insurance, recreation and travel.
• Successfully filling a market need means you could make money for yourself and provide jobs for others.
BUSINESS VS. ENTREPRENEUR
•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. •Success in business is often based on the strategy of finding a need and filling it.
•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’s
expenses are more than its revenues.
PROFIT/LOSS IN DIFFERENT
INDUSTRIES
WHAT IS RISK?
•Risk The chance an entrepreneur
takes of losing time and money on a business that may not prove profitable.
•GREATER THE RISK, GREATER THE
REWARD
RISK VS. REWARD
• What is the relationship between risk + reward? • The greater the risk, the greater