15 views4 pages
School
Course
Professor
Introduction to Management Chapter One
Business: an organized effort to provide goods or services, to customers, in order to make a
profit.
Profit: the money that remains after a businesss expenses are subtracted from its
revenues.
Profit is the fundamental reason for a business to exist. Not all organizations are
businesses, ex. Hospitals, universities, churches. They provide services, but not for a profit.
Loss: when expenses are greater than revenues. (It cost more money to produce the
products and run the business, than the business can generate through sales.)
Economics: the study of how businesses and people make choices about:
What things to produce/consume
How best to produce things
How best to distribute wealth
The basic economic theory states that There are basic building blocks used to produce
anything, we call those building blocks Factors of production.
1.Natural Resources raw materials found in ground, grown from earth, or
harvested from nature. Examples include: coal, wheat, water, wood
2.Labour human beings, example workers.
3.Capital money, or machines and technologies that money can buy. Examples
Include: computers, phones, hammers, tractors
4.Entrepreneurs the people who assemble and organize the other factors of
production, the individuals who make it all happen.
Economic systems are countries ex. Canada
The way different countries try to answer basic economic questions:
Who should own of control the factors of productions?
What should be produced, with the available factors?
Two types of economic systems
www.notesolution.com
Unlock document

This preview shows page 1 of the document.
Unlock all 4 pages and 3 million more documents.

Already have an account? Log in

Document Summary

Business: an organized effort to provide goods or services, to customers, in order to make a profit. Profit: the money that remains after a business"s expenses are subtracted from its revenues. Profit is the fundamental reason for a business to exist. They provide services, but not for a profit. Loss: when expenses are greater than revenues. (it cost more money to produce the products and run the business, than the business can generate through sales. ) Economics: the study of how businesses and people make choices about: what things to produce/consume, how best to produce things, how best to distribute wealth. The basic economic theory states that there are basic building blocks used to produce anything, we call those building blocks factors of production. : natural resources raw materials found in ground, grown from earth, or harvested from nature. Examples include: coal, wheat, water, wood: labour human beings, example workers, capital money, or machines and technologies that money can buy.

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
Booster Classes
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
Booster Classes