RSM100Y1 Lecture : Lecture 4
Document Summary
Rsm100y1- lecture # 4- business & society -20111005. Agenda: connect with last week, role of business in society, wealth creation (the diamond) Try to help people who are out of work, because people are stakeholders (some responsibility) Milton s theory no responsibilities since owner have to make profits or other extreme. Wealth (n) the annual produce of the land and labour of society adam smith, 1776. Wealth creation: combining materials, ideas, labour, and technology so that the output can be sold for more than costs. This profit brings wealth to the people and society involved in production. Role of business & society is so create wealth, if business creates wealth, other good things will be more likely to happen. If producers can produce bread for sh. 50 and sell it for . 50, that is requirement #4 save him time & convenient. Profit generated can be invested or put into use again to production.
