COMMERCE 1E03 : Commerce 1E03 chapter notes.docx

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Chapter 1 (4-25) business & entrepreneurship revenues, profits, & losses. Business is any activity that seeks to provide goods and services to others while operating at a profit (revenue over expenses) An entrepreneur is a person who risks time and money to start and manage a business->in 2009, forbes magazine stated that there were 790billionares around the world, 20 being canadian. Businesses do not only make money, they offer necessities such as food, clothing, housing, medical care, transportation as other good/services to make our lives easier. Revenue is the total amount of money a business takes in during a given period by selling good/services. Losses occur when a business"s expenses exceed its revenues->approx. 125,000 business exit the marketplace each year (most business failures are due to poor management and/or associated with cashflow) Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable->companies that take the most risk earn most profit.