Textbook Notes (363,062)
Canada (158,169)
MGTA01H3 (583)
Chapter 1

Thorough notes for Chapter One of Business, Vol. 1, 2e

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University of Toronto Scarborough
Management (MGT)
Chris Bovaird

MGTA03 Business, Volume 1 R. Griffin, R. Ebert, F. Starke Chapter 1 Understanding the Canadian Business System The Concept of Business and Profit A business is an organization that producessells goods or services in an effort to make a profit. (Profit = Revenues Expenses) What consumers wantneed is important for business owners to take into account because without the demand for their goodservice their business will not survive (no matter how efficient) Someone who sees a promising opportunity (which always involves goodsservices that consumers needwant) and develops a good plan for capitalizing on it will be able to succeed as a business New forms of technology, service businesses, and international opportunities keep production, consumption, and employment growing Economic Systems Around the World An economic system is the way in which a nation allocates its resources among its citizens Major determinant of how organizations operate: type of economic system that characterizes the country that they do business in Factors of Production Factors of production are the basic resources that a business uses to produce goods and services Key difference between economic systems: the way in which their factors of production are managed o Labour the people who work for a company. Well-trained, knowledgeable employees can be a competitive advantage for a company o Capital financial resources needed to operate an enterprise. For small businesses, a major source of capital comes is personal investments by owners. Revenue = key and ongoing source of capital o Entrepreneurs the people who accept the opportunities and risks involved in creating and operating businesses; the person who www.notesolution.com
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