RSM100Y1 Chapter 1: chapter 1
8 Feb 2012
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business: an organization that seeks to earn profits by providing goods and services. profit: what remains (if anything) after a business expenses have been subtracted from its revenue. business must take into account what consumers want or need. business will not survive if there is no demand for its goods or services. promises to keep production, consumption, and employment growing. business profits enhance the personal income of owners and stockholders. business taxes help support the government at all levels. some businesses support charities and provide community leadership. every country has its unique type of business; depends on the kind of economic system. economic system: the way in which a nation allocates its resources among its citizens. key difference between economic systems is the way they manage the factors of production. factors of production: the basic resources used to produce goods and services; labour, capital, entrepreneurs, and natural resources.
