MGTA01 Chapter 1 Notes:
Business – an organization that produces or sells goods or services in an effort to make a
Revenue – The money a business earns selling its product and services.
Expenses – The money a business spends producing its goods and services and generally
running the business.
Profit – The money that remains (if any) after a business’s expenses are subtracted from its
- Business produces most of the good and services we consume. Creates job
opportunities and advances our technology and living.
Economic system: the way in which a nation allocates its resources among its citizens. It
differ in terms of who owns and control these resources, know as factor of productions.
Factors of Production:
The resources uses to produces good:
Labour – Labour consist of mental and physical capabilities of people. The more skilled
and knowledgeable gives you