Review of CHAPTER 1

1. Business: 2006 and Beyond

~ The four basic FACTOR OF PRODUCTION are natural resources, capital, human resources & entreprenuership.

~ BUSINESS consists of all profit seeking activities that provide goods and services necessary to an economic system.

~ ENTREPRENUERS are the risk takers in the PRIVATE ENTERPRISE SYSTEM.

~ The 6 historical ERAS are the coloniall period, the Industrial Revolution, the age of the industrial entrepreneur, the production era, the marketing era and the relationship era.

~ TECHNOLOGY allows businesses to provide new goods and services for consumers, improve customer service, lower prices and enhance working conditions.

~ The relationship between the # of units produced, humans & other production inputs needed to produce is called PRODUCTIVITY.

~CAPITALISM basic rights are private property, profits, competition and freedom of choice.