Textbook Notes (363,232)
Canada (158,276)
MGTA01H3 (583)
Chapter 1

BUSINESS CUSTOM 2/E VOL. 1 Chapter 1 Readings (very detailed and helpful)

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University of Toronto Scarborough
Management (MGT)
Chris Bovaird

Chapter 1: Understanding the Canadian Business System 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 businesss expenses 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 No matter how efficient a business is, it wont survive if there is no demand for its goods and services Someone who can spot a promising opportunity and then develop a good plan for capitalizing on it can succeed Economic systems around the world Economic system: The way in which a nation allocated its recourse among its citizens Factors of production: The resources used to produce foods and services such as labour, capital, entrepreneurs, and natural resources o Labour: The mental and physical training and talents of people; sometimes called human resources Employees who are well trained and knowledgeable can be a real competitive advantage for a company o Capital: The funds needed to operate an enterprise Major sources of capital for small businesses is personal investment by owners Investments come fromindividual entrepreneurs, partners who start biz together, or from investors who buy stock o 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 o Natural resources: Items used in the production of goods and services in their natural state, including land, water, mineral deposits, and trees o Information resources (not so important): 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 economies: An economic system in which government controls all or most factors of production and makes all or most production decisions o Communism: A type of command economy in which the government owns and operates all industries www.notesolution.com
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