What is business
refers to the individuals and organizations that seek a profit by providing products that satisfy people’s needs
What is the main goal of business
to make a profit
What is product
refers to goods or services with tangible and intangible attributes that provide satisfaction and benefits. A product can be a good, service, or idea.
What is profit
the difference between what it costs to make and sell a product and what a customer pays for it
Nonprofit organizations
do not have the fundamental purpose of earning profits, although they may provide goods or services
Who are stakeholders
groups that have a stake in the success and outcomes of a business
The people involved in business activities
owners, employees, and customers
The activities of businesses include
management, marketing, and finance
What is management
is the process of coordinating human, natural, and financial resources to achieve an organization’s objectives. Management is also concerned with acquiring, developing, and using resources effectively and efficiently in a business.
What is marketing
involves all activities designed to provide goods and services that
satisfy consumers’ needs and wants, including gathering information and conducting research to determine customer wants; planning and developing products; and determining price, distribution, and promotion
What is finance
refers to all activities concerned with obtaining money and using it
effectively
Economics
is the study of how resources—or factors of production—are distributed for the production of goods and services within a social system
Natural resources
are land, forests, minerals, water, and other things not made by people
Human resources
are the physical and mental abilities that people use to produce goods and services
Financial resources
(capital) are the funds used to acquire the natural and human resources needed to provide products
What is an economic system
describes how a society distributes its resources to produce goods and services that satisfy the needs of its people
What is demand
is the quantity of goods and services that consumers are willing to buy for different prices at a specific time
What is supply
is the quantity of goods and services that businesses are willing to sell for different prices at a specific time
What is equilibrium price
is the point at which supply and demand curves intersect, indicating that supply and demand are equal at that point
What is economic expansion
occurs when an economy is growing and people are spending more money
What is inflation
a continuing rise in prices
What is economic contraction
occurs when spending declines
What is recessions
which are marked by a decline in production, employment, and income
What is unemployment
is measured as the percentage of the population that wants
to work but is unable to find jobs
