Ch1Notes

In: Business and Management

Submitted By julio32
Words 692
Pages 3
Chapter One Notes:
The core goal of business is to generate long-term profits by delivering value to customers.
In a business, profit is equal to sales minus expenses.
(Profit = sales – expenses)
Business will incur a loss when expenses are higher than revenues.
Value is the relationship between the price of a product or service and the benefit that it offers its customers.
To be successful, entrepreneurs must be comfortable risking their money and time to start and manage a business.
The five distinct eras of American business are: * The Industrial Revolution * The Entrepreneurial Era * The Production Era * The Marketing Era * The Relationship Era
Entrepreneurs create benefits for others while seeking profit for themselves.
Successful U.S. firms embrace change.
Huge factories replaced skilled artisan workshops during the Industrial Revolution.
Factory production boomed as mass production took hold during the Industrial Revolution.
During the production era, jobs became even more specialized and the cost of goods became lower.
The marketing era introduced the marketing concept.
The relationship era introduced the idea that cultivating current customers is more profitable than constantly seeking new ones.
The hard sell aggressive persuasion designed to separate consumers from their cash emerged during the production era.
During the marketing era consumers found more choices for goods and services.
Nonprofit organizations are not in the business of financial gain.
Nonprofit organizations contribute to our region’s economic stability and growth by employing approximately one in ten workers nationwide.
Nonprofit organizations are commonly known for supporting the arts industry.
Natural resources include all inputs offering value such as land, fresh water, wind, and mineral deposits.
As a factor of production, capital would…...

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