p. 8

1. Revenue is the total amount of money a business takes in during a given period by selling goods and/or services, and profit is the amount a business earns above and beyond what it spends for salaries and other expenses.
2. Standard of living refers to the amount of goods and services people can buy with the money they have, and quality of life refers to the general well-being of a society including political freedom, a clean natural environment, and education.
3. Risk is the chance of losing time and money on a business that may not prove profitable. The more risk you take, the higher the profit or loss. The less risk you take, the lower the profit or loss.
4. The term stakeholders means all the people who stand to gain or lose by the policies and activities of a business.

p. 11

1. The advantages of working for others include someone else assumes the entrepreneurial risk and provides you with benefits such as paid vacation time and health insurance.
2. The United States is called the land of opportunity because it offers opportunities for all including the opportunity for many people to own and manage their own business.
3. The five factors of production are land, labor, capital, entrepreneurship, and knowledge. What makes rich countries rich today, the key to wealth, is a combination of entrepreneurship and the effective use of knowledge.

p. 21

1. Four ways that government can foster entrepreneurship are to minimize taxes and regulations, enact laws the encourage entrepreneurship, pass laws that enable businesspeople to write contracts that are enforceable in court, and minimize interference with free exchange of goods and services.
2. Productivity is the amount of output you generate given the amount of input (e.g., hours worked), and technology enhances productivity by providing products that minimize input.
3. Ways that companies can compete with speed include generating new product ideas quickly, producing products quickly, and delivering products quickly.

p. 28

1. Some of the diverse groups of people that managers must manage include seniors, the disabled, and homosexuals.
2. The factors that have led to two-income families include the high costs of housing and maintaining a comfortable life style, high level of taxes, and the cultural emphasis on "having it all."
3. The major factor that caused people to move from farming to industry and from industry to the service sector is increased productivity.