Business Stats

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Chapter 1: Taking Risks and Making Profits within the Dynamic Business Environment

Chapter One

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McGraw-Hill/Irwin

Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

This Week

DUE TUESDAY • Take quiz on Chapter 4 over the weekend. • Read Chapters 1, Taking Risks and Making Profits within the Dynamic Business Environment • Class work DUE THURSDAY • Quiz already taken online • Class work – Cases

– Chapter Presentations/Case

– After class Tuesday to Thursday morning before class

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GOODS and SERVICES

Entrepreneurship and Wealth Building

LG1

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• Goods -- Tangible products such as computers,

food, clothing, cars and appliances.

• Services -- Intangible products that can’t be held in

your hand like, education, healthcare, insurance, recreation and travel.

• Success in business is often based on the strategy of finding a need and filling it.

1-3

BUSINESS and ENTREPRENEURSHIP

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Entrepreneurship and Wealth Building

LG1

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• Business -- Any activity that seeks to provide

goods and services to others while operating at a profit.

• Entrepreneur -- A person who risks time and

money to start and manage a business.

• Successfully filling a market need means you could make money for yourself and provide jobs for others.

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*Revenues,

REVENUE, PROFIT AND LOSS

• Revenue -- The total amount

of money a business takes in during a given period by selling goods and services.

Profits and Losses LG1

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• Profit -- The amount of money

a business earns above and beyond what it spends for salaries and other expenses.

• Loss -- Occurs when a

business’ expenses are more than its revenues.

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RISK

Matching Risk with Profit LG1

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• Risk -- The chance an entrepreneur takes of losing

time and money on a business that may not prove profitable.

• Businesses take risks, but with great risks could come great profit.

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HOW IS TAX MONEY USED?

Taxes are...