MGTA01H3 Chapter Notes - Chapter 1: Canadian Transport Commission, Planned Economy, Market Economy
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MGTA01H3 Full Course Notes
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Document Summary
Business : an organization that produces or sells goods or services in an effort to make a profit. Profit: is what remains after a business"s expenses have been subtracted from its revenues. Expenses: the money a business spends producing its goods and services and generally running the business. Revenues: the money a business earns selling its products and services. In choosing how to pursue profits, businesses must take into account what consumers want or need. Businesses produce most of the goods and services we consume and employ the majority of working people. An economic system allocates a nation"s resources among its citizens. Factors of production: the basic resources that a country"s businesses use to produce goods and services. Traditionally economists have focused on four factors of production: labor, capital, entrepreneurs, and natural resources. Labour: the mental and physical training and talents of people; sometimes called human resources. Capital: the funds needed to operate enterprise.
