MGM102H5 : Ch. 1 study guide
Document Summary
Business: any activity that seeks to provide a good or service to others while operating at a profit. Entrepreneur: someone who risks time and money to start and manage a business. Stakeholders: all the people who stand to gain or lose by the policies and activities of a business. This includes customers, employees, investors (stockholders), financial institutions (bank and credit unions), suppliers, surrounding customers, among a few others. Business can affect government policies through their activities and efforts of their lobbyists, associations, and trade unions. Outsourcing: assigning various functions, such as accounting, security, production, maintenance, and legal work, to outside organizations. Could do great harm to the community because many jobs would be lost. Business leaders must make decisions based on all factors, including the need to make a profit. As you can see, pleasing all stakeholders is not easy and it calls for trade-offs that are not always pleasing to one or another stakeholder.
