MGTA01H3 Chapter 1: Chapter 1 Study Guide
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MGTA01H3 Full Course Notes
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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. Economic system: the way in which a nation allocates its resources among its citizens. Factors of production: the resources used to produce goods and services: labour, capital, entrepreneurs, and natural resources. Labour: the mental and physical training and talents of people; sometimes called human resources. Capital: the funds needed to operate an enterprise. 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.
