Taking Risks and Making Profits within the Dynamic Business Environment
Chapter 1 (page 4-19)
Taking Risks and making Profits within the Dynamic Business Environment
Business: Any activity that seeks to provide goods and services to others while operating at a profit. Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses needed to run the business operation. Goods are tangible products such as computers, food, clothing, cards appliances and services include intangible products which cannot be held in your hand such as education, health care, insurance, recreation, travel and tourism. Entrepreneur is a person who risks time and money to start and manage a business. (Sam Walton started Wal Mart, Bill Gates started Microsoft) Revenue is the total amount of money a business takes in during a given period by selling goods and services. Loss occurs when business expenses are more than its revenues. Risk is the chance an entrepreneur takes of losing time and money on business that may not prove profitable. Higher the amount of risk, higher is the profit.
Standard of Living: The amount of goods and services people can buy with the money they have. Business provides employment, employees pay tax and the tax is used by the government to build the infrastructure.
Quality of Life: The general well being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time and everything else that leads to satisfaction and joy that goods and services provide. High quality of life is a combined effort of business, non- profit organizations and government agencies.
Stakeholders: All the people who stand to gain or lose by the policies and activities of a business. Stakeholders include customers, employees, stockholders, suppliers, dealers, bankers, and people in the surrounding community, environmentalists and government leaders.
Non- profit organizations: An organization whose goals do not include making a personal profit for its owners or
Taking Risks and making Profits within the Dynamic Business Environment
Business: Any activity that seeks to provide goods and services to others while operating at a profit. Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses needed to run the business operation. Goods are tangible products such as computers, food, clothing, cards appliances and services include intangible products which cannot be held in your hand such as education, health care, insurance, recreation, travel and tourism. Entrepreneur is a person who risks time and money to start and manage a business. (Sam Walton started Wal Mart, Bill Gates started Microsoft) Revenue is the total amount of money a business takes in during a given period by selling goods and services. Loss occurs when business expenses are more than its revenues. Risk is the chance an entrepreneur takes of losing time and money on business that may not prove profitable. Higher the amount of risk, higher is the profit.
Standard of Living: The amount of goods and services people can buy with the money they have. Business provides employment, employees pay tax and the tax is used by the government to build the infrastructure.
Quality of Life: The general well being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time and everything else that leads to satisfaction and joy that goods and services provide. High quality of life is a combined effort of business, non- profit organizations and government agencies.
Stakeholders: All the people who stand to gain or lose by the policies and activities of a business. Stakeholders include customers, employees, stockholders, suppliers, dealers, bankers, and people in the surrounding community, environmentalists and government leaders.
Non- profit organizations: An organization whose goals do not include making a personal profit for its owners or