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Lecture 1

COMMERCE 1AA3 Lecture Notes - Lecture 1: Retail, 1978 Atlantic Hurricane Season, Canadian Airlines

Course Code
Emad Mohammad

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COMMERCE 1E03 Friday January 11, 2019
Week 1
Chapter 1 Los
1. Illustrate the importance of key business fundamentals to wealth generation.
2. Identify business stakeholders and their importance to non-profit organizations and
business activities.
3. Explain how entrepreneurship is critical to the wealth of an economy and list the five
factors of production that contribute to wealth.
4. State the six elements that make up the business environment and explain why the
business environment is important to organizations.
5. Give examples of how the service sector has replaced manufacturing as the principal
provider of jobs, but why manufacturing remains vital for Canada.
Business Fundamentals
Success in business is finding a need for products (goods, services, and/or ideas) and
filling that need
A business is any activity that seeks to provide products to others while operating at a
Since not all businesses make a profit, starting a business can be risky
Business Objectives
Business principles are used in for-profit, non-profit/not-for-profit, and government agencies
where oftentimes, goals are other than making a profit for their owners or organizers
People have different tolerances for risk
Two ways to succeed in business include (1) starting your own
company or (2) working your way to the top within a company
To decide which is the best choice for you, you have to
calculate the risks and the potential rewards of each decision
Two Markets
Consumer Market (Business to Consumer / B2C)
Products that are purchased for personal use
e.g., you purchase a book or a shirt for yourself
Business Market (Business to Business / B2B)
Product are purchased for resale OR
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COMMERCE 1E03 Friday January 11, 2019
Week 1
For use in the manufacture of other products OR
For daily operations
e.g., office manager purchases paper for the printer
A business can sell to both types of markets
Defined as all the people who stand to gain or lose by the policies and activities
of a business
Customers want value
Employees want security
Investors want a strong ROI (return on investment)
Suppliers want to be paid
Dealers want support
FIs (financial institutions) want returns
Surrounding communities want “equity”
Governments want compliance
Environmentalists want change
Future employers want skilled graduates
Creating Economic Wealth
If you were to analyze countries to see what causes the differences in the levels of
wealth, you would have to look at the factors of production in each country
What makes countries rich today is a combination of entrepreneurship and the effective
use of knowledge
Entrepreneurs use what they’ve learned (knowledge) to grow their businesses and
increase wealth
Economic and political freedom also matter
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