Revenue and profit Essay Example for Free

Revenue and profit Essay Q1 – What is the difference between revenue and profit? A1 – Revenue is the total amount of money that a business takes in during a given period by selling goods and services. Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses, which is to use revenue to minus salaries and expenses. Q2 – What is the difference between standard of living and quality of life? A2 – The term of standard of living refers to the amount of goods and services people can buy with the money they have. Standard of living is the physical measurement of peoples living. Q3 – What is risk, and how is it related to profit? A3 – Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable. The more risk that business people take, the more profit that business people may have. Q4 – What do the terms stakeholders, outsourcing, and insourcing mean? A4 – Stakeholders refer to all the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address. Outsourcing means that contracting with other companies to do some or all of the function of a firm, like its production or accounting tasks. Insourcing means that the company internally do some or all of the functions of a firm, like its production or accounting tasks. Q5 – What are some of the advantages of working for others? A5 –Somebody else assumes the companys entrepreneurial risk and provides you with benefits., like paid vacation time and health insurance. The company you work for will provide the tools and technology to make your job more productive. Q6 – What benefits do you lose by being an entrepreneur, and what do you gain? A6 – As an entrepreneur, you do not receive any benefits such as paid vacation time, and you have to provide them to yourself. By being an entrepreneur, you will have freedom to make your own decisions, opportunity, and possible wealth. Q7 – What are the five factors of production? Which ones seem to be the most important for creating wealth? A7 – The five factors of production are land, labor, capital, entrepreneurship , and knowledge. The most important one is knowledge. Q8 – What are four ways the government can foster entrepreneurship? A8 – First, the government allow private ownership of businesses. Secondly, the government can further lessen the risks of entrepreneurship by passing laws that enable businesspeople to write enforceable contracts. Thirdly, the government can also establish a currency thats tradable in world markets. Finally, the government can help minimize corruption in business and in its own ranks. Q9 – Whats the difference between effectiveness, efficiency, and productivity? A9 – Effectiveness describes producing the desired result, and efficiency refers to produce goods and services using the least amount of resources. Productivity is the amount of output you generate given the amount of output. Q10 – What is empowerment? A10 – Empowerment defines that giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests. Q11 – What are some of the major issues affecting the economy today? A11 – First, the war and terrorism issue makes the government to spend more money on the military, and firms have to purchase more secure devices to ensure their customers security. Second, global changes create a need for continuous learning. Finally, the climate change of the world affects the way people use energy. People tend to save energy and to produce products that cause less harm to the environment. Q12 – What major factor caused people to move from farming to manufacturing and from manufacturing to the service sector? A12 – The using of technology and machines increases the productivity and eliminates many jobs in agricultural fields. Then, with the development of technology and machines, farms and industries need few and few farmers and workers. Therefore, more and more people tend to find jobs in service sectors. Q13 – What does the future look like for tomorrows college graduates? A13 – The service ear now seems to be coming to a close as a new era is beginning . We are in the midst of an information-based global revolution that will alter all sectors of the economy. Save your file as Chapter 1.doc and submit it through the appropriate Assignment Link in Blackboard.