Revenue — definition?
Money earned from sales of goods/services.
Costs — definition?
Expenses incurred in running a business.
Profit — definition?
Revenue minus costs; financial gain.
Factors of Production — five?
Natural resources, labor, capital, entrepreneurship, knowledge.
Standard of Living — measure?
Overall well-being based on goods/services output.
Entrepreneurs — role?
Drive innovation and economic growth.
Business vs Not-for-profit — difference?
Profits for businesses; societal benefit for not-for-profits.
External Environment — sectors?
Economic, political & legal, demographic, social, competitive, global, technological.
Internal Environment — control?
Management, employees, culture, resources.
Economic System — types?
Capitalism, socialism, communism, mixed economy.
Macroeconomics — focus?
Overall economy, GDP, inflation, unemployment.
Microeconomics — focus?
Individual agents, markets, supply/demand.
GDP — indicator of?
Economic growth and activity.
Unemployment Types — four?
Frictional, structural, cyclical, seasonal.
Inflation — effect?
Reduces money's purchasing power.
Balance of Payments — records?
All international transactions of a country.
Current Account — includes?
Goods, services, income, unilateral transfers.
Capital Account — tracks?
Financial and real asset flows.
Hedging — purpose?
Reduce investment risk via derivatives.
Forward Contract — characteristic?
Customized, future price agreement OTC.
Futures Contract — characteristic?
Standardized, exchange-traded, daily settlement.
Business Mergers — goal?
Combine companies to increase competitiveness.
Testez vos connaissances avec un QCM de 11 questions sur Fundamentals of Business and Economic Environments.
1. According to the source, approximately how many shoes has TOMS donated through its social entrepreneurship efforts?
2. What is the economic sector in the context of external business environment sectors?
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