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Canada (161,641)
Commerce (1,690)
Rita Cossa (83)
Chapter 1

Commerce Chapter One.docx

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Department
Commerce
Course
COMMERCE 1B03
Professor
Rita Cossa
Semester
Fall

Description
Commerce Chapter One: “Managing Within the Dynamic Business Environment” Business and Entrepreneurship: “Revenues, Profits and Losses” Entrepreneur: A person who risks time and money to start and manage a business Revenue: The total amount of money a business takes in during a given period by selling goods and services Loss: When a business’s expenses are more than its revenues Stakeholders: All the people who stand to gain or lose by the policies and activities of a business  All of the examples of stakeholders (customers, employees, banks ect) are all affected by the products, policies and practices of businesses, and their concerns need to be addressed  Businesses can also influence government policies through the activities and efforts of their associations, lobbyists and trade unions Lobbyists: The act of trying to influence decisions made by officials in the government The challenge of the twenty-first century will be for the organizations to balance, as much as possible, the needs of all stake holders.  The need for the business to make profits must be balanced against the needs of employees for sufficient income Offshoring: Sourcing part of the purchase inputs outside of the country  The need to stay competitive may call for offshoring jobs to other countries, recognizing that this sound business strategy might do harm to the community because jobs would be lost Outsourcing: Assigning various functions, such as accounting, production, security, maintenance, and legal work to outside organizations Non-Profit Organization: An organization whose goals do not include making a personal profit for its owners or organizers  Schools, Hospitals, Charities  Make contribution to the welfare of society  Non-profit organizations do strive for financial gains, but such gains are used to meet the stated social or educational goals of the organization rather than personal profit Social Entrepreneurs: People who use business principles to start and manage non-profit organizations and help countries with their social issues Factors of Production: The resources used to create wealth: land, labour, capital, goods, entrepreneurship, and knowledge (note the five factors in other notes*)  The young workers in the high-tech industries are sometimes called “knowledge workers”  People are willing to start a business if they believe the risk of losing their money isn’t too great  Governments do a lot to lessen the risk of starting and running a business through the laws that are passed by its elected officials  The constitution act defines the powers that can be exercised b the different levels of government Regulations: Rules or orders made by the government to carry out the purposes set out in statutes Businesses need to be aware of the laws that will affect their business. E.g.: A government can keep taxes and regulations to a minimum, thereby encouraging entrepreneurship and increasing wealth.  Entrepreneurs are looking for a high return on investment (ROI), including the investment of their time  If the government takes away much of what the business earns through high taxes, ROI may no longer be worth the risk  Provinces and cities with high taxes and restrictive regulations tend to drive entrepreneurs out and vice versa  The government can also lessen the risk of entrepreneurs by passing laws that enable business people to write contracts that are enforceable in court The economic environment looks at income, expenditures, and resources that affect the cost of running a business.  Businesses review the results of major economic indicators such as consumer spending, employment levels, and productivity That analysis will give them an idea of what is happening in t
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