RSM100Y1 Chapter 1: Understanding the Canadian Business System
Document Summary
Business: an organization that seeks earn profits by providing goods and. Profit: what remains (if anything) after a business"s expenses have been services subtracted from its revenues. Profits reward the owners of the business for taking the risks involved in investing their time and money. In canada"s economics system, businesses exist to earn profits to the owners who are free to set them up. Consumers also have freedom of choice, so businesses must take into consideration the consumer needs and wants. Businesses won"t survive (even if they are very efficient) if there is no demand for their product or service. People who can spot good opportunities and develop a good plan for taking advantage of it will succeed. Good opportunity are things that consumers need or want, and something that is not being supplied to consumers or it is being supplied inefficiently or incompletely by other businesses.
