MGTA01H3 Study Guide - Midterm Guide: Monopolistic Competition, Deflation, Risk Aversion
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MGTA01H3 Full Course Notes
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Business: an organization that seeks to earn profits by providing goods or services. Profit: the money that remains (if any) after a business"s expenses are subtracted from its revenue. Expenses: the money a business spends producing its goods and services and generally running the business. Revenues: the money a business earns selling its products and services. Profits reward owners of businesses for taking risks involved in investing their time & money. Deficit=> when a business spends more than it gains. In canada"s economic system => business"s earn profit for owners who are free to set them up. No demand for good/ service that business provides = will not survive (supply & demand concept) Businesses produce most of the goods/ services we consume and enjoy (majority) Healthy business climate => quality of life and standard of living. New forms of technology, service businesses & international opportunities => keep production, consumption and employment growing, indef.