Introduction to Business 135 Lecture Notes:Chapter OneBusiness and Entrepreneurship: Business- any activity that provides goods or services by operating at a profit.“Goods” include tangible products and “Services” include intangible productsWhat is an Entrepreneur? An Entrepreneur is a person who takes a risk in starting and managing a business for the first time.Risk - an uncertainty about an event. There is Money risks and Time risks Revenue – Money that business receive by selling goods and services“Breaking even” is when no profits are made but nothing is lost.Loss – When you owe people money and have no profit to pay them. Entrepreneurs Contribute:Standard of Living – Measures the amount of goods that one can purchase with their earnings.Quality of Life – Measures the general well being of the society. (Happiness)Stake holders – Someone who has a claim in the business, the “owners”.Outsourcing – Giving a contract to an outside organization to handle some of the firms’ functions.Insourcing – When a foreign company opens a factory or a facility here in our country and employs our citizens.Nonprofit Organizations: Goals: social and educational (they help out society in certain ways).Social Entrepreneurs: Use business principals to start and manage nonprofit organizations to address small issues. -Muhammad Yunus won the Nobel Prize for starting Grameen Bank (divide micro loans sufficient for people in poverty to start a business).The Advantages and Disadvantages of Entrepreneurship: ADVANTAGES: You get to make all of the business decisions, you have a chance to become wealthy, you can take pride in the success of your business, you are able to leave a legacy behind.DISADVANTAGES: Requires a lot of investments, can be overwhelming and stressful, You need to put in long hours, high risk, no paid benefits.Five Factors of Production: Land-Natural Resources Labor- Human labor Capital- Tools and Equipment Entrepreneurship KnowledgeThe Governments Role in Business:They can promote business by…-Minimizing spending and keeping taxes and regulations to a minimum-Allowing private ownership-Minimizing interference with the free exchange of goods and services-Passing laws that enable business people to write enforceable contracts-Establishing a currency that’s tradable in World Markets-Minimizing corruptionBenefits of Technology:Technology is anything that enables us to accomplish tasks more efficiently and effectively.Efficiency – Fewer resources such as less time, less labor hours, and less waste.Effectiveness - Should give desired results.Productivity – Measures the total output with the given inputUse of Social Media –Advertising to the consumersE. Commerce: The buying and selling of goods on the Internet. B2C- Business to CustomerB2B- Business to Business Database- Electronic filing system where date is organized in a systematic manner.Identity TheftProtecting Yourself from Identity Theft:Protect your social security numberShred financial and personal documents and informationDon’t give out personal information unless you know whom you are dealing with.Use strong passwordsNever click links in suspicious emailsMonitor your credit