MGTA01H3 Lecture Notes - Lecture 2: Industrial Revolution, Car Wash, Shampoo

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Mgta01 lecture # 2 businesses and factors of production. What do people need: goods: products which are tangible, shoes, clothes, books, cars, shampoo, services: products which are intangible, health care, clean sheets, education, safety and security. Samsung: running a business is a risk as customers are humans who may sometimes be irrational. Factors of production: the basic building blocks used to produce anything, natural resources: raw materials found in ground, grown from earth, or harvested from nature. Examples: coal, wheat, water, wood: labour: businesses need people. Works, human beings: capital: money, machines or technologies that money can buy. Tractors, hammers, printers, phones: entrepreneurship: businesses are formed by people who are motivated to take the time, incur costs and risks to make something happen. Factor intensity: a business that relies on natural resources is resource intensive , ex: farming, fishing, forestry, mining, a business that relies on lots of money, equipment and technology is capital intensive, ex: car wash.