Profits are earned when a company’s revenue exceeds its expenses.

Goods are the physical products offered by a business. Services are intangible products, such as a haircut, health care, or car insurance.

A business is an entity that offers goods and services to its customers to earn a profit. A not-for-profit organization is an organization that does not pursue profits but instead seeks to service its community through social, educational, or political means.

The factors of production are the resources used to create goods and services. The factors of production include labor, natural resources, capital, intellectual property, entrepreneurial talent, and technology.

Competition arises when two or more businesses vie to attract customers and gain an advantage over one another. Competition forces companies to improve their product offerings, lower their prices, aggressively promote their brand, and focus on customer satisfaction.

Social environment encompasses demographic factors, such as race, ethnicity, gender, age, income distribution, sexual orientation, and other characteristics. An aging population, increasing diversity, and the green movement both challenge and pose opportunities to business owners.

Globalization involves the merging of economies around the world as technology, goods and services, labor, and capital move back and forth across international borders. Although globalization provides profitable opportunities, such as increased markets and offshoring, it also leads to greater competition for U.S. businesses and workers.

Technology items and services such as smart phones, computer software, and the Internet make businesses more efficient and productive. E-commerce is well established and still growing, offering even small firms a chance to sell to a global market. At the same time, keeping up with the pace of technology is an expensive and time-consuming operation for many businesses.

A local business relies on local consumers to generate business.

Regional businesses are companies that serve a wider area than local businesses but do not serve national or international markets.

A national business has several outlets throughout the country, but it does not serve an international market. It provides goods or services to all U.S. residents, no matter where in the country they live.

Multinational enterprises also known as multinational companies or corporations, multinational businesses, or international businesses, are companies that have operations in more than one country. They are among the leaders of a movement called globalization.

You have income, expenses, and profits.

You are affected by globalization and technology.

You have concerns with security.