MGTA01H3 Study Guide - Economic Equilibrium, Planned Economy, Monopolistic Competition
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MGTA01H3 Full Course Notes
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Document Summary
Business: an organization that seeks to earn profits by providing goods and services. Profit : the money that remains after a business"s expenses are subtracted from its revenues. Expenses: the money a business spends producing its good and services and generally running the business. Revenues: the money a business earns selling its products and services. 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: labour, capital, entrepreneurs and natural resources. Labour : the mental and physical training and talents of people (aka human resource). Capital : the funds needed to operate an enterprise. Entrepreneurs : an individual who organizes and manages labour, capital and natural resources to produce goods and services to earn a profit, but who also runs the risk of failure.
