BUS 201 Lecture 1: CHAPTER1
16 Jan 2016
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Document Summary
Business- an organization that seeks to earn profits by providing goods and services. Profit- (what remains) after a business"s expenses are subtracted from its sale revenues- profit=revenue-expense. Not-for-profit organization- an organization that provides goods and services to customers, but does not seek to make a profit while doing so. Economic system- the way in which a nation allocates its resources among its citizens. Factors of production- the resources used to produce goods and services: labor, capital, entrepreneurs, and natural resources. Labor- the mental and physical training and talents of people; sometimes called human resources. Capital-the fund needed to operate an enterprise. Entrepreneur- an individual who organizes and manages labor, capital, and natural resources to produce goods and services to earn a profit, but who also run the risk of failure (who take the opportunities whiling run the risks) Natural resources- items used in the production of goods and services in their natural state, including land, water, mineral deposits, and trees.
