Textbook Notes (362,880)
Canada (158,081)
MGTA01H3 (583)
H Laurence (25)
Chapter 1

Study Guide to Chapter 1

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University of Toronto Scarborough
Management (MGT)
H Laurence

Chapter 1: Understanding The Canadian Business System The Concept of Business and Profit: Business: an organization that produces or sells goods or services in an effort to make a profit. Profit: is what remains after a businesss expenses have been subtracted from its revenues. (Reward for the owner who put in their time and money) Expenses: money a business spends producing its good 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 Businesses: Exist to earn profits for the owners who set them up. Need to take into account what consumers want and need. Needs a demand, in order to survive Produce most of the goods and services we consume and employ a majority of working people Contributes to the quality of life and standard of living New forms of technology, service businesss and international businessopportunities keep production, consumption and employment growth. Economic systems around the world: The economic system: the way in which a nation divides and distributes its resources among its citizens. The economic system of a country affects and determines the way in which a business operates. They differ depending on who owns and controls the factors of production Factors of Production: the resources used to produce goods and services. Each country manages the factors of production differently. o 1. Labor: People who work for a company sometimes called human resources. The mental and physical capability of people Labor forces require may ranges of skilled workers Well trained workers are a competitive advantage to companies o 2. Capital: www.notesolution.com
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