Business Basics
The primary objective of a for-profit business, which separates it from a nonprofit.
What is earning a profit (or maximizing value for owners)?
The traditional four factors of production.
What are natural resources (land), labor, capital, and entrepreneurship
The functional area responsible for identifying customer needs, product promotion, pricing, and distribution.
What is marketing?
True or False: A shareholder is always a stakeholder, but a stakeholder is not always a shareholder.
What is True?
A massive consumer shift toward buying organic foods or working remotely represents this external force.
What is a social (or socio-cultural) force
The profit of a bakery that brings in $15,000 in revenue and has $11,000 in expenses.
What is $4,000?
The factor of production that includes human-made tools, machinery, technology, and buildings.
What is capital?
The functional area that transforms raw material inputs into finished, quality goods or services.
What is operations (or operations management)
Employees, managers, and owners are examples of this specific type of stakeholder.
What are internal stakeholders
A sudden spike in national inflation that shrinks consumer purchasing power is an example of this force.
What is an economic force
This type of organization uses its surplus revenues to achieve a social goal rather than distributing them to owners.
What is a nonprofit organization?
A founder risking their own savings and time to launch a brand new tech startup represents this specific factor.
What is entrepreneurship?
This department handles the tracking, recording, and reporting of all financial transactions.
What is accounting (or finance)?
Customers, local communities, and suppliers represent this specific group of stakeholders.
What are external stakeholders?
A new city health regulation that legally requires a business to upgrade its equipment represents this force.
What is a legal (or political) force?