Textbook Notes (368,330)
Canada (161,803)
Commerce (1,695)
Rita Cossa (83)
Chapter 1

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Department
Commerce
Course
COMMERCE 1B03
Professor
Rita Cossa
Semester
Winter

Description
Chapter 1 - Taking risks and making profits within the dynamic business environment goods - tangible products such as computers, food, clothing, cars and appliances services - intangible products (products that can't be held in your hand) such as education, health care, insurance, recreation, and travel & tourism business - any activity that seeks to provide goods and services to others while operating at a profit entrepreneur - a person who risks time and money to start and manage a business revenue - the total amount of money that is received during a given period for goods sold, services rendered, and other financial services profit - the amount of a business earns above and beyond what it spends for salaries and other expenses loss - when a business's expenses are more than its revenues bankruptcy - refers to the liquidation of the business debtor's assets and the end of the commercial entity's operations risk - refers to the chance of loss, the degree of probability of loss, and the amount of possible loss (ie. time and money) it is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable starting a business can be a huge risk, but huge risks can result in huge profits as a potential business owner, you need to do research to find the right balance between the risk and profit for you you must calculate the risks and the potential rewards of each decision businesses and their employees pay taxes to the different levels of government (federal, provincial, municipal) this money is used to build hospitals, schools, libraries, playgrounds, roads and other public facilities taxes also help to keep the environment clean, support people in need and provide police and fire protection a country's businesses are part of an economic system that contributes to the standard of living and quality of life for everyone in the country standard of living - the amount of goods and services people can buy with the money they have Canada has one of the highest standards of living in the world (partially because of its wealth created by businesses quality of life - the general well being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure, and rewards that add to the satisfaction and joy that other goods and services provide requires the combined efforts of businesses, non-profit organizations and gov't agencies the more money businesses create, the more is potentially available to improve the quality of life for everyone working to builder a higher standard of living may lower the quality of life if it means less time with the family or more stress stakeholders - all the people who stand to gain or lose by the policies and activities of a business offshoring - sourcing part of the purchased inputs outside of the country 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 their gains are used to meet their social or educational goals rather than for personal profit factors of production - the resources used to create wealth: land, labour, capital goods, entrepreneurship and knowledge The five factors of production land - land and other natural resources are used to make homes, cars and other products labour - people have always been an important resource in producing goods and services, but many people are now being replaces by technology capital goods - capital includes machines, tools, buildings, and other means of manufacturing entrepreneurship - all the resources in the world have little value unless entrepreneurs are willing to take the risk of starting a business to use these resources knowledge - information technology has revolutionized business, making it possible to quickly determine wants and needs and to respond with desired goods and services the business environment consists of the surrounding factors that either help or hinder the development of businesses important concept 1.the legal environment gov'ts can do a lot to lessen the risk of starting and running a business through laws(acts) that are passed by its elected officials. regulations consist of restrictions that provincial and federal laws place on
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