COMMERCE 1E03 Midterm: Commerce Midterm 1
19 May 2016
School
Department
Course
Professor
Document Summary
Business: any activity that seeks to provide goods and services to others while operating at profit. Goods: tangible products such as computers, food, clothing, cars. Services: intangible products (cant be held) such as education, health care, insurance, recreation, travel and tourism. Entrepreneur: a person who risks time and money to start and manage a business. Revenue: the total amount of money that is received during a given period for goods sold and services provided and other financial sources. Profit: the amount a business earns above and beyond what it spends for salaries and other expenses. Loss: when businesses expenses are more then its revenues. Risk: refers to the chance of loss, the degree of probability of loss, and the amount of possible loss (ie. time and money) Starting a business can be risky because not all businesses make a profit. People have different tolerances for risk, & there are 2 ways to become successful in business.
