RSM219H1 Study Guide - Quiz Guide: Maple Leaf Foods, Planned Economy, Market Economy
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RSM219H1 Full Course Notes
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A business is an organization that produces or sells goods or services in an effort to make a profit. Wants or needs: not all organized efforts are business. I. e. church, temple, mosque, sports leagues: provides something for someone. People don"t start churches in order to make a profit: businesses are motivated by profits. What you pay is more than what they spent to make/provide the product. Therefore they make a profit: profit is the difference between: 31905$ in (revenues or sales) and 31905$ out (costs and expenses: profit is the fundamental reason for businesses to exist. Tries to make a profit -> even though they haven"t, they still are a business because they are attempting to make a profit. Other companies: maple leaf foods, enron, air canada, zoom airlines: economics is the study of how best to produce things and distribute wealth. Profit is what remains after a business" expenses have been subtracted from its revenues.
