Foundation of Business
An organization that strives for a profit by providing goods and services.
What is a business?
Raw materials provided by nature, categorized into renewable (solar/wind) and non-renewable (minerals/oils) types.
What are natural resources?
The component of the business environment made up of owners, managers, workers, and internal operational decisions.
What is the internal environment?
An economic system based on private ownership of resources, marketplace competition, and individual profit motive.
What is capitalism?
The subarea of economics that focuses on individual units, such as single households, specific firms, or product pricing.
What is microeconomics?
The amount of financial revenue left over after all of a business's costs and expenses are paid.
What is profit?
The tools, machinery, equipment, and buildings used to produce goods and services, excluding physical cash.
What are capital resources?
The study of vital statistics of a population - such as age, gender, race, and location - used by businesses to define markets.
What are demographics?
An economic system where the government owns virtually all resources and centrally plans all production and pricing decisions.
What is communism?
The subarea of economics that studies the economy as a whole, focusing on aggregate data like GDP, inflation, and national employment.
What is macroeconomics?
The economic measure of the output of goods and services that people can buy, contrasted with overall quality of life.
What is standard of living?
The physical and mental effort provided by human workers across all levels of an enterprise.
What are labor resources?
The external sector that includes government regulations, tariffs, corporate charters, and laws, like the Telecommunications Act of 1996.
An economic system where the government owns basic critical industries like utilities and transportation, but smaller businesses are private.
What is socialism?
In the circular flow model, households supply these essential inputs to businesses in exchange for wages, rent, and profit.
What are the factors of production?
Organizations such as the NCAA, charities, and educational groups that operate for goals other than monetary gain.
What are non-profits?
People who risk their time and capital to combine natural, labor, and capital resources to create products for profit.
Who are entrepreneurs?
An external force reflecting shifts in societal values, attitudes, time poverty, and the increasing ratio of women in the workforce.
What are social influences?
An economy that combines private enterprise with government regulation and social support programs, such as the US or France.
What is a mixed economy?
In the circular flow model, when the government cut taxes, consumer spending typically increases, leading to this effect on economic activity.
What is expansion/growth?
The probability or uncertainty of losing time and money when operating a business venture.
What is risk?
Considered the 'fifth' factor of production, it focuses on the combined talents, skills, and technology of an educated workforce.
What is knowledge?
The amount of goods and services a single worker can produce, significantly boosted by technology and automation.
What is productivity?
The fundamental economic right guaranteed under capitalism that allows individuals to control land, assets, and capital.
What is the right to own property?
Highways, public schools, police protection, and courts are examples of these, provided by government in exchange for this.
What are taxes?