MGIS 317 Chapter Notes - Chapter 1: Opportunity Cost, Franchising, Gross Domestic Product

• School: University of Calgary
• Department: Management Information Systems
• Course: MGIS 317
• Professor: Ronald Schlenker

Document Summary

A business is any organisation that uses resources in order to fulfil people s needs and wants. They add a value to raw materials like for example turning a piece of wood into paper. Business activity uses resources to produce goods or services which make our life easier and more comfortable. Businesses identify the needs of customers or other firms and then purchase and use resources to satisfy those needs. The most common aim of a business is to gain profit or to expand. Land: land for buildings and location of the business, and proximity to raw materials (e. g. locating near a forest for wood) Labour: manual or skilled labour who form the workforce. Capital: finance needed to start up a business and to pay resources and suppliers. Enterprise: risk-takers who make decisions and manage the business. A business adds value to their products when sold, so that there is enough capital to pay suppliers.