Taking Risks and Making Profits Within the Dynamic Business Environment
Francisco SanchezAssignment 1 NotesChapter 1Taking Risks and Making Profits within the Dynamic Business EnvironmentGetting To Know MONIF CLARKE of¬†MONIFC.COM¬†learning goal¬†1Describe the relationship between profit and risk, and show how businesses and nonprofit organizations can raise the standard of living for all..I.¬†¬†¬† Entrepreneurship and Wealth Building¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†A.¬†¬†¬†¬†¬†¬†¬† Revenues, Profits, and LossesRevenues are what a business makes — revenues do not necessarily mean profits. ¬† A profit is the total amount of money made beyond expenses. ¬†Losses are things that occur when you are not making a profit.¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬† B.¬†¬†¬†¬†¬†¬†¬† Matching Risk with ProfitYou often have to decide whether or not you are going to take a risk and if that will result in a profit. ¬†Sometimes you have to take a risk in order to profit. ¬†You have to do a cost benefit analysis. ¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬† C.¬†¬†¬†¬†¬†¬†¬† Standard of Living and Quality of LifeOften you want a high standard of living and quality of life in your business and personal needs.¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬† D.¬†¬†¬†¬†¬†¬†¬† Responding to the Various Business StakeholdersBusinesses often have to respond to the interests of stakeholders. ¬† Sometimes businesses cannot make decisions without first speaking with them.

E.¬†¬†¬†¬†¬†¬†¬† Using Business Principles in Nonprofit OrganizationsNonprofits do want to make profits — but not with the ability to often pay their employees with that money. ¬† A nonprofit still can run with business-like incentives. ¬†¬†learning goal¬†2Compare and contrast being an entrepreneur and working for others.II.¬†¬† ENTREPRENEURSHIP VERSUS WORKING FOR OTHERS¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†A.¬†¬†¬†¬†¬†¬†¬† Opportunities for EntrepreneursMost businesses begin with entrepreneurs. ¬†They are definitely crucial to business. ¬†Entrepreneurs are often the ones that then create the ability for others to work for them. ¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬† B.¬†¬†¬†¬†¬†¬†¬† The Importance of Entrepreneurs to the Creation of Wealth.¬†Entrepreneurs create business so they are obviously importan tto the creation of wealth. III.¬†¬†THE BUSINESS ENVIRONMENTlearning goal¬†3Analyze the effects of the economic environment and taxes on businesses.¬†When businesses are taxed, there is a bit of a catch 22 situation. ¬†While they are making profits and this is usually considered to be important to tax, many would say that it hurts small businesses to “tax them to death.” ¬†So there is a bit of a struggle for businesses to succeed when they are taxed. ¬†Businesses, however, create wealth for the government when taxed.

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Dynamic Business And Nonprofit Organizations. (April 2, 2021). Retrieved from https://www.freeessays.education/dynamic-business-and-nonprofit-organizations-essay/