BUS 201 Chapter 1: Bus201 Chapter 1.doc

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 201
• Professor: Maureen Fizzell

Document Summary

Business managers must pay attention to many different things, including the actions of competitors, rapid technological change, new product development, corporate strategy, risk management, stock prices. Business is an organization that produces or sells goods or services in an effort to make a profit. Profit is what remains after a business"s expenses have been subtracted from its revenues. Prospect of earning profits is what encourages people to start and expand businesses. Not-for-profit organizations an organization that seeks to earn profits by providing goods and services. A major determinant of how organizations operate is the kind of economic system that characterizes the country in which they do business. Economic system- allocates a nation"s resources among its citizens. Factors of production are owned by the government. Command economy- an economic system in which government controls all or most factors of production and makes all or most production decisions.