COMMERCE 1B03 Chapter 6: Commerce text notes.docx
4 Feb 2014
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Document Summary
Business- any activity that seeks to provide goods and services to others while operating at a profit. Profit- the amount a business earns above and beyond what it spends for salaries and other expenses. Entrepreneur- a person who risks time and money to start and manage a business. Revenue- the total amount of money a business takes in during a given period by selling goods and services. Loss- when a business expenses are more than revenue. Risk- the chance an entrepreneur takes of losing time and money on a business that may not prove profitable. Stakeholders- all the people who tend to gain or lose by the policies and activities of a business. Offshoring- sourcing part of the purchased inputs outside of the country. Outsourcing- assigning various functions, such as accounting, production, security, maintenance, and legal work to outside organizations. Non-profit organization- an organization whose goals do not include making a personal profit for its owners and organizers.
