Textbook Notes (368,432)
Canada (161,877)
RSM100Y1 (431)
John Oesch (214)
Chapter 1

Business-Chapter 1: Understanding the Canadian Business System

13 Pages
526 Views
Unlock Document

Department
Rotman Commerce
Course
RSM100Y1
Professor
John Oesch
Semester
Fall

Description
Business Chapter 1 Understanding the Canadian Business System The Concept of Business and ProfitBusiness An organization that seeks earn profits by providing goods and servicesProfit What remains if anything after a businesss expenses have been subtracted from its revenuesProfits reward the owners of the business for taking the risks involved in investing their time and moneyIn Canadas economics system businesses exist to earn profits to the owners who are free to set them upConsumers also have freedom of choice so businesses must take into consideration the consumer needs and wants Businesses wont survive even if they are very efficient if there is no demand for their product or servicePeople who can spot good opportunities and develop a good plan for taking advantage of it will succeedGood opportunity are things that consumers need or want and something that is not being supplied to consumers or it is being suppliedinefficiently or incompletely by other businesses Businesses produce most of the goods and services we consume employ a majority of the working people create most new innovations provide opportunities for other businesses usually as their suppliers support charities and provide community leadershipHealthy business climates contributes directly to ones quality of life and standard of livingNew forms of technology service business and international business allow to keep production consumption and employment growing for ever not always smoothly thoughBusiness profits improve the personal incomes of millions of owners and stockholdersBusiness taxes help to support government at all levelsEconomic Systems Around the WorldCanadian business is very different from a business in many other countriesEconomic System The way in which a nation allocates its resources among its citizensEconomic systems differ in terms of those who owns and controls these resourcesFactors of ProductionFactors of Production The resources used to produce goods and servicesthis includes labour capital entrepreneurs and natural resources information resources is included nowadays as wellThe key difference between economicsystems is the way they manage their factors of production LabourThe first factor of production is labour sometimes called human resourcesThe people who work for a company represent the labourLabour or human resources The mental and physical training and talents of peopleEx Imperial Oil requires a labour force with a wide variety of skill ranging from managerial to geological transportationWell trained and knowledgeable employees can provide a real competitive advantage for companiesCapital Capital The funds needed to operate an enterpriseObtaining and using other resources ex labour requires capitalCapital is needed to start and keep a business running and growingEx Imperial Oil needs millions of dollars in cash equipment and assets to run its operationsFor small businesses a major source of capital is from investments made by the ownerInvestments can come from individual entrepreneurs partners who start a business together or from investors who buy stocksA major source of capital for businesses is the revenue generated through the sale of their products Entrepreneurs Entrepreneur An individual who organizes and manages labour capital and natural resources to produce goodsand services to earn a profit but who also runs the risk of not succeedingEntrepreneurs accept the opportunities and risks involved in creating and running a business Ex Mark Zuckerberg Facebook and Sergie Brin and Larry Page GoogleNatural ResourcesNatural ResourcesItems used in the production of goods and services in their natural state including land water mineral deposits and treesImperial Oils natural resources includes their crude oil land and so onInformation Resources Information Resources Information such as market forecasts economic data and specialized knowledge of employees that is useful to a business and that helps it achieve its goalsMuch of what businesses results in either the creation of new information or the repackaging of existing information for new users and different audiencesTypes of Economic Systems Economic systems differ in the way the factors of production are managed and the way that decisions are made about production and allocation
More Less

Related notes for RSM100Y1

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit