Prof. B. Smith
BTM101-0051

HW 1-2. Due on 9/11/2013.

P.3: Connecting with Terry Pham: 3 Main Ideas:

1) The business environment is constantly changing due to economic decline (unemployment and inflation) and uncertainty in the tastes and preferences of consumers.

2) Keep things simple. By virtue of his experience of helping his Mother, Pham was able to learn about business. Soon enough he had gathered enough knowledge to start his own business.

3) Understand the marketplace and your customers. Remain flexible and objective. Pham refocused his company to where quality control and service went far beyond what was expected.

P.8:

1) What is the difference between revenue and profit? Revenue is the total amount of money 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 needed to run the operation. Simply put revenues minus expenses equals profit.

2) What is the difference between standard of living and quality of life? Standard of living refers to the amount of goods and services people can buy with the money they have. Quality of life refers to the general well-being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure, and rewards that add to the satisfaction and joy that other goods and services provide. Quality of life requires the combined efforts of businesses, non-profit organizations, and government agencies. The more money created, the greater the potential to improve the quality of life for everyone.

3) What is risk and how is it related to profit? Risk is the chance that an entrepreneur takes of losing time and money on a business that may not prove profitable. Risk is related to profit in