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1/2011
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3;
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8249;#›
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![](3D"slide0001_image001.gif")
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*
Chapter One
![](3D"slide0001_image002.gif")
![3DCover.psd](3D"slide0001_image004.gif")
Tak=
ing
Risks and
Making Pro=
fits
within the
Dynamic Bus=
iness
Environment
Copyright © 2010 by the McGraw-Hill Companies, =
Inc.
All rights reserved.
McGraw-Hill/Irwin
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Profile
•A 17-year-old h=
igh
school student
•Reopened small
town’s only grocery store
•Borrowed $22,000 to buy building & fixtures
•Worked to save $10,000 to stock the store
•Worked 90-100 h=
ours
per week
•Paid off loan i=
n one
year
NICK GRAHAM
Main Street Mark= et
Main Street Mark= et
![3Dgraham.gif](3D"slide0004_image007.gif")
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![](3D"slide0006_image008.gif")
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Entrepreneurshi=
p and
Wealth Building
=
•Goods -- Tangible products such as computers, food, clothing, cars and appliances.
=
=
3;
•Services -- =
Intangible products that can’t be held=
in your hand like, education, healthcare, insur=
ance,
recreation a=
nd
travel.
-
-
•Success in business is often based on the <=
span
style=3D'position:absolute;top:70.25%;left:10.48%;width:81.08%;height:5.7=
5%'>strategy of finding a need and filling it.
=
-
GOODS and SERVICES<=
/span>
LG1
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![](3D"slide0007_image009.gif")
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*
Entrepreneurshi=
p and
Wealth Building
•Business -- =
Any activity that seeks to provide goods and services to others while operating=
at a
profit.
=
=
=
3;
•Entrepreneur=
-- A person who risks time and money to start and manage a business.
•
•Successfully fi=
lling
a market need means you could make money for yourself and provide jobs for others.
BUSINESS and
ENTREPRENEURS= HIP
ENTREPRENEURS= HIP
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*
Revenues, <=
/span>Profits and Losses<=
/span>
•Revenue -- <=
/b>The total amount of money a business takes in during a given period by selling =
goods and services.
=
=
3;
•Profit -- The amount of money a business earns above and beyond what it spends for =
salaries and other expenses.
•
•Loss -- =
Occurs when a business’ expenses are more than its revenues.
REVENUE, PROFIT AND LOS=
S
![3DMoney.gif](3D"slide0008_image012.gif")
LG1
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![](3D"slide0009_image013.gif")
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*
Matching Risk <=
/i>with Profit=
•Risk -- =
The chance an entrepreneur takes of losing <=
/i>time and money on a business that may not pr=
ove profitable.
<=
span
style=3D'font-family:Helvetica;font-size:104%;visibility:hidden'>•
•Businesses take
risks, but with great risks could come great profit.
<=
span
style=3D'font-family:Helvetica;font-size:104%;visibility:hidden'>-
RISK
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![](3D"slide0010_image014.gif")
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Businesses Add =
to the Standard=
of Living and Qual=
ity of Life
Taxes are used to provide:
•Hospitals
•Schools
•Libraries
•Playgrounds
•Roads
•Fire Protection&=
#13;
•Police Protection
•Environmental Programs
•Support for Peop=
le in
Need
=
![3Dfire1.gif](3D"slide0010_image016.gif")
HOW IS TAX MONEY USED?<=
/b>
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