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CA (538,426)
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MGTA01H3 (350)
Lecture

A Business Defined, Economic Systems, Degrees of Competition

3 Pages
54 Views

Department
Management (MGT)
Course Code
MGTA01H3
Professor
Chris Bovaird

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Chapter 1 t Understanding the Canadian Business System
D]v}]v}(}Ç[oµ
- (]v]]}v}(^µ]v_
o An organization that provides goods/services to customers in order to make a profit
o Not all organization are businesses t e.g. hospitals, universities, churches t these are services
- Profit and loss
o Profit: the difference between money in (revenue/sales) and money out (costs/expenses)
o Profit is the fundamental reason for a business to exist
o Loss: when expenses are greater than revenues
When it costs more money to produce the products and run the business than the
business can generate through sales t e.g. Air Canada, GM
- Economics: the study of how businesses and people make choices about:
o What things to produce/consume
o How to produce things in the most efficient way
o How to best distribute wealth among employees/employers
- Basic Economics theory
o There are basic building blocks used to produce anything t ZooZ^(}}(
produc]}v_
- Factors of production
1. Natural Resources
Raw materials found in ground, grown from earth, or harvested from nature
E.g. coal, wheat, water, wood
2. Labour
A thriving workforce
E.g. human beings (workers)
3. Capital
Money/machines/technology that money can buy to further the development of a
business
E.g. computers, phones, hammers, tractors
4. Entrepreneurs
The people who assemble and organize the other factors of production t the individuals
who make it all happen
Chapter 1 t Understanding the Canadian Economy - Economic Systems
Economic Systems
- Who should own/control the factors of production?
- What should be produced, with what factors of production?
- Countries differ as to how central the government is in running an economy
o Communism t left wing (North Korea) (Government 100%)
o Socialism t moderate left wing (Cuba)
o Mixed t moderate right wing (Canada)
o Capitalism t right wing (None) (Individuals 100%)
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Description
Chapter 1 J Understanding the Canadian Business System ,]L}]LZ}}[Zo - ]L]]}L}^Z]LZZ_ o An organization that provides goodsservices to customers in order to make a profit o Not all organization are businesses J e.g. hospitals, universities, churches J these are services - Profit and loss o Profit: the difference between money in (revenuesales) and money out (costsexpenses) o Profit is the fundamental reason for a business to exist o Loss: when expenses are greater than revenues When it costs more money to produce the products and run the business than the business can generate through sales J e.g. Air Canada, GM - Economics: the study of how businesses and people make choices about: o What things to produceconsume o How to produce things in the most efficient way o How to best distribute wealth among employeesemployers - Basic Economics theory o There are basic building blocks used to produce anything J ZZ ooZ^ }Z} produc]}L_ - Factors of production 1. Natural Resources
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