MGTA01H3 Chapter Notes - Chapter 1: Perfect Competition, Demand Curve, Natural Monopoly
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MGTA01H3 Full Course Notes
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Business: an organization that produces or sells goods and services in an effort to make a profit. Profit: what remains after a business"s expenses have been subtracted from its revenues. Expenses (costs): money a business spends producing its goods and services, running the business. Revenues (sales): money earned selling its goods and services. Businesses that can identify, plan and then act on an opportunity based on consumer wants/needs will succeed and make a profit. Many businesses contribute to society through producing/selling goods/services, new innovations, charities, taxes for gov. support. A major determinant of how organizations operate is the kind of economic system that characterizes the country in which they do business. An economic system is the way a nation allocates its resources among citizens. Economic systems are differentiated by factors of production. Basic resources that a country"s businesses use to produce goods and services. Labour (human resources): mental and physical capabilities of people.
