MGMT 100 Lecture Notes - Lecture 1: Nonprofit Organization, Social Entrepreneurship
6 Dec 2017
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Document Summary
Business : any activity that seeks to provide goods and services to others while operating at a profit. Needs to borrow loans from financial institutions. Revenue : total amount of money received during a given period for goods and services rendered, and from other financial sources. Profit : amount a business earns above and beyond what it spends for salaries and other expenses. Loss : when a business" expenses are more than its revenues. A business leaving the marketplace is called an . Risk : chance of loss, degree of probability of loss, and the amount of possible loss. The higher the risk, the higher the expectation is to make a larger profit. Standard of living and quality of life. Businesses and employees pay taxes to government for public facilities. The wealth that businesses generate helps everyone. A country"s businesses are part of an economic system that improves the standard of living and the quality of life.
