MGTA01H3 Chapter Notes - Chapter 1: Planned Economy, Sales Tax, Income Tax
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MGTA01H3 Full Course Notes
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Document Summary
Way fop are managed is what differentiates economic systems. * key reason for businesses to exist; however not all orgs. Chapter 1 understanding the canadian business system. Business: organization that sells goods and services for profit. Profit: expenses revenue (monies spent to produce goods - monies earned) Loss: expenses are more than sales; costs more to produce the products & run business than the profit. Economics: study of how businesses, people make choices about what to produce/consume, how best to produce things, and how best to distribute wealth. Economic system: way in which a nation allocates its resources among citizens. Factors of production (fop): basic resources used to produce goods. Entrepreneurs: people who accept the risks involved in creating and maintaining a business. Natural resources: raw materials used to produce goods. Information resources: knowledge that is purchased and used to help a business. Market: mechanism for exchange between buyers & sellers. 2 types of economic system: command & market.
