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Final

MGTA01H3 Study Guide - Final Guide: Economic System, New Product Development, Financial Intermediary


Department
Management (MGT)
Course Code
MGTA01H3
Professor
Chris Bovaird
Study Guide
Final

This preview shows pages 1-3. to view the full 15 pages of the document.


an organized eort to provide the things that people need & wants & willing to
pay for. A business exists in order to satisfy those customer needs & also to make a
prot

1. Organised eorts
2. Provides things that people need & wont
3. Satisfy customer needs
4. Generates revenue from sales
money that 'ows into a business every time it sells a product or service to a
customer
 !money that a business spend, to provide customers with products
"revenues minus expenses
"idea people will give up their time, energy & money only if there is some
incentive for them to do so
#revenues don’t cover expenses and costs
$%&'"provides products and services and may collect revenue but
not intended to make prot; i.e. Places for worship, sport teams, university
%&'organization owned by gov’t
Provide- health, education, safety, security and welfare
(products which are tangible that can be touched
)products are intangible, can’t see or touch
 *owners of the means of production are a class of people who grow wealthy by
exploiting the labours of others; Karl Marx
#*people left to pursue their own self-interest without gov’t interference; Adam
Smith
+
$(basic building blocks that in combination are required to make a
business and product things
1. Natural Resources
2. Labor
3. Capital
4. Entrepreneurship
things found in nature; land, water, wood
Resource Intensive- dependent on natural resources
#people who contribute their eorts to a business

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Labour Intensive- requires large amount of labour for g/s
!money or machines and technologies that money can buy
Capital Intensive- requires lots of money, machines or technology for g/s
,(series of technological developments and inventions (labour
saving) transformed agriculture, mining, etc in the 18th century
)subbing one factor of production for another so products can be
made more quickly or cheaply
!people motivated to take time to incur the costs and risks to make
something happen
!!willingness or motivation to take initiative to accept risk of failure in
return for reward
-
%.&(&$(
*study of how people produce the thing they need and wants
What to produce, what to consume, how to produce it, how to share it
*)/*
Government or
Individuals
Communism Socialism Mixed Market
Capitalism
Gov’t runs all gov’t leads some gov’t involvement no
gov’t interference
Planned Market
0*individual business owners closer to their customers
Individual business owners can respond quickly to people’s needs
- In Canada businesses and gov’t co-exist
Businesses and the state interact; taxes, laws and regulations, provide g/s
transfer ownership of businesses or industries out of gov’t; i.e. Rolls Royce
and Jaguar
gov’t assumes control of resources, business and industries
Runs them intending to benet the entire nation
,* Canadians pay taxes based on their annual income; tax system is
progressive; distribute largely to services that benet less fortunate

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.!enterprise owned and operated by a gov’t in Canada; federal or
provincial; i.e. LCBO and Hydro One
).(!a gov’t owned organization that provides g/s but don’t seek
prot
0name given to series of laws instituted in the Soviet Union in 1980’s; policies
reserved the economic policies of collectivisation and nationalisation put in place after
Russian revolution
 
Corporate Income Tax- 13% of gov’t revenue; taxes on businesses revenue
Sales Tax- HST-13% taxed on g/s; split 5% to federal and 8% to provincial 11%
of gov’t revenue
Employment Insurance- 2% of individual annual income; helps unemployed
Canadians nancially-8% of gov’t revenue
*&
Canadian Human Rights Act- equal of race, gender, sexual orientation and
discrimination
Canada Labour Code- minimum wages and limited hour of working
Employment Insurance Act- 52 weeks of maternity or paternity
Consumer Packing and Labelling Act- provide labelling information to help
customers make informed purchasing
1
0interaction of buyers and sellers exchanging information about products
2&$*!combination of numbers of buyers and sellers in a market;
sometimes called “market structure”
Determines- variety of choice buyer has and negotiating power seller has
/characteristic which makes a business or industry diFcult, time-
consuming or
0)% of individual rm’s sales relative to total sales within a given market
*$)capacity to reduce costs when producing g/s in large quantities
&0particular group of people who share similarities; i.e. age. Gender, location,
income, who buy similar g/s because they have similar needs and wants
/characteristics that makes business or industry diFcult or expensive to
enter, or product diFcult, time consuming or expensive to make
#&(!/business that enjoys exclusive right to sell product or service in
given market because gov’t gave right through passing relevant legislation
23convince potential customers that product is dierent or better than
competitors
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