MGMT 100 Study Guide - Midterm Guide: Foreign Direct Investment, Crowdfunding, Producer Price Index
7 Dec 2017
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Business: any activity that seeks to provide goods and services to others while operating at a profit. Entrepreneur: person who risks time and money to start and manage a business. 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 exit. 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.
