COMMERCE 1E03- Midterm Exam Guide - Comprehensive Notes for the exam ( 24 pages long!)
5 Oct 2017
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Goods - tangible products such as computers, food, clothing and appliances. Services - intangible products such as education, healthcare and insurance. Business - a business is any activity that seeks to provide goods and services to others while operating at a profit. Entrepreneur - is a person who risks time and money to start and manage a business. Components of a business: reliable accountant, good lawyer, strong managers. Revenue - total amount of money received during a given period for goods and services rendered, and from other financial services. Profit - when a business" revenues > expenses. Loss - when a business" expenses > revenues. All businesses share the common objective of survival in the business world, social responsibility and growth/profit: both for profit and nonprofit businesses utilize the same business principles. Risk/reward tradeoffs: people have different tolerance for risk. Two markets: consumer market, products are purchased for personal use, business market.
