Chapter 1: Managing within the dynamic business env.
2012-09-28 5:59 AM
• What is the difference between revenue and profit?
• What is risk, and how is it related to profit?
• What do the terms “stakeholders, offshoring, outsourcing” mean?
• What are some of the advantages of working for others?
• What benefits do you lose by being an entrepreneur, and what do you gain?
• What are the 5 factors of production? Which factors are key to wealth?
• List the six elements of the business environment
• What are 4 ways in which the government can foster entrepreneurship?
• How does technology benefit workers and customers?
• Describe the components of competition
• What is empowerment?
• What social trends are evident in Canada?
• What are 2 changes that have affected the global environment?
• Why is the manufacturing sector important to the economy?
• What is the major factor that caused people to move from farming to industry and from industry
to the service sector?
Learning Objective #1: describe the relationship of business’ profit -to-risk assumption
• A business is any activity that seeks to provide goods and services to others while operating at a
• What are the relationships between risk, profit and loss?
o Profit is money a business earns above and beyond the money it spends for salaries and
other expenses. Business peopl e make profits by taking risks. Risk is the chance an
entrepreneur takes of losing time and money on a business that may not prove profitable.
A loss occurs when a business’ costs and expenses are more than its revenues
Learning Objective #2: discuss the importance of stakeholders and non-profit organizations to business
• Stakeholders include customers, employees, investors (like stockholders), suppliers, dealers,
people in the local community, environmentalists, and government.
• Which stakeholders are most important to a business?
o The goal of business leaders is to try to balance the needs of al stakeholders and still