Textbook Notes (367,876)
Canada (161,461)
MGTA01H3 (583)
Chapter 1

Chapter 1.docx

4 Pages
25 Views
Unlock Document

Department
Management (MGT)
Course
MGTA01H3
Professor
Chris Bovaird
Semester
Fall

Description
Chapter 1: 1 | Define the nature of Canadian business and identify its main goals. THE CONCEPT OF BUSINESS AND PROFIT - business - An organization that seeks to earn profits by providing goods and services. - profit - The money that remains (if any) after a business's expenses are subtracted from its revenues. - expenses - The money a business spends producing its goods and services and generally running the business. Also referred to as “costs.” - revenues - The money a business earns selling its products and services. Also referred to as “sales.” 2 | Describe different types of global economic systems according to the means by which they control the factors of production through input and output markets. ECONOMIC SYSTEMS AROUND THE WORLD Economics: - The study of how businesses, people make choices about: - What things to produce/consume - How best to produce things - How best to distribute wealth. - economic system - The way in which a nation allocates its resources among its citizens. Factors of Production - factors of production - The resources used to produce goods and services: labour, capital, entrepreneurs, and natural resources. Labour - labour - The mental and physical training and talents of people; sometimes called human resources. Capital - money, or machines and technologies that money can buy. - computers, phones, hammers, tractors - capital - The funds needed to operate an enterprise. - a major source of capital for small businesses is a personal investment by owners, which can come from individual entrepreneurs, from partners who start businesses together, or from investors who buy stock Entrepreneurs - entrepreneur - An individual who organizes and manages labour, capital, and natural resources to produce goods and services to earn a profit, but who also runs the risk of failure. Natural Resources - natural resources - Items used in the production of goods and services in their natural state, including land, water, mineral deposits, and trees. Information Resources - information resources - Information such as market forecasts, economic data, and specialized knowledge of employees that is useful to a business and that helps it achieve its goals. Types of Economic Systems - command economy - An economic system in which government controls all or most factors of production and makes all or most production decisions. - market economy - An economic system in which individuals control all or most factors of production and make all or most production decisions. Command Economies - communism - A type of command economy in which the government owns and operates all industries. - socialism - A kind of command economy in which the government owns and operates the main industries, while individuals own and operate less crucial industries. Market Economies - A mechanism for exchange between the buyers and sellers of a particular good or service. Capitalism - Individuals owns/control all factors of production - Individuals make 100% of economic decisions Mixed Market Economies - Individuals own/controls majority of factors - Individuals make most of economic decisions - Governments regulate and tax, run some business - Example: Canada, USA, UK, France - privatization - The transfer of activities from the government to the public sector. - deregulation - A reduction in the number of laws affecting business activity. INTERACTIONS BETWEEN BUSINESS AND GOVERNMENT How Government Influences Business Government as Customer - the government is the largest purchaser of advertising in Canada - many businesses depend on government purchasing, if not for their survival, at least for a certain level of prosperity Government as Competitor - government also competes with business through Crown corporations, which exist at both the provincial and federal level, and account for a significant and wide variety of economic activity in Canada Government as Regulator - federal and provincial governments regulate many aspects of business activity, also through their decisions, which sometimes business people feel is unfair in the way it performs its role as regulator - government regulates business through many administrative boards, tribunals, or commissions - there are several important reasons for regulating business activity: protecting competition, protecting consumers, achieving social goals, and protecting the environment Government as Taxation Agent - taxes are imposed and collected by federal, provincial, and local governments - revenue taxes - Taxes whose main purpose is to fund government services and programs. - progressive revenue taxes - Taxes levied at a higher rate on higher-income taxpayers and at a lower rate on lower income taxpayers. - regressive revenue taxes - Taxes that cause poorer people to pay a higher percentage of income than richer people pay.
More Less

Related notes for MGTA01H3

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit