Business Notes -business: an activity that provides goods or services to consumers for the purpose of making a Profit -good: tangible items such as a car, tv, soda -service: consumable, one time benefit ex. Haircut, hotel stay, amusement ride -profit: revenue or income that a business owner retains after paying all the expenses associated with the operations -value: relationship between the price a customer pays for the good or service and the benefit they received -nonprofit: provides goods and services but the goal is not to return profit to owners of the business, rely on donations -resources are the inputs used to produce outputs (goods and services) -4 categories of resources: natural resources, labor, capital, entrepreneurship -natural resources: found in nature, can be used in production of goods and services -labor: human resources both physical and intellectual -entrepreneurship: special form of labor provided by an entrepreneur who risks their time and money to start a business -key functional areas: management, operations, marketing, accounting, finance -planning: managers set long term goals for business -operations manager: oversee day to day business operations -financial accountants: prep financial reports for inside and outside organizations -managerial accounting: used internally for the managers to make decisions -finance managers: short and long term financial capital needs and analyze the impact that borrowing has on the business -stakeholder: person or group who has interest in the success of the business -market stakeholders: people involved in the business trade operations -free trade: allows goods and services to flow across international borders more effectively and cheaper -opportunity costs: indicate what you have to give up to obtain a desired outcome -division of labor: which means that the way a good or service is produced is divided into a number of tasks that are performed by different workers -Microeconomics focuses on the actions of individual agents within the economy, like households, workers, and businesses; macroeconomics looks at the economy as a whole.
