BSM 100 Midterm: Test 1 review
17 May 2016
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Document Summary
Value: relationship between price of a good and its benefits for customers. Profit: financial reward that comes from starting and running a business; money that a business earns in sales (revenue) minus expenses; money earned in sales. Business: any activity that provides goods and services to earn a profit. Drives up standard of living, which contributes to quality of life. Entrepreneurs: take something and make something out of nothing. People who risk time, money, and other resources to start and manage a business. Create a ripple effect, enriching everyone around them. Standard of living: quality and quantity of goods/services available to population. Quality of life: overall sense of well-being. Business eras: industrial revolution mid 1700s to mid 1800s. Mass production: entrepreneurship era late 1800s. Focus on refining production process and creating greater efficiencies: marketing era post-ww2. Balance of power shifts from producers to consumers: relationship era present. Customer as a focus area is a recent phenomenon.
