RSM100Y1 Chapter : DETAILED NOTES.
Document Summary
Chapter 1 the ups and downs of commodities. Profits rewards the owners of business s for taking the risks involved in investing their time and money. In canada s economic system, businesses exist to earn profits for owners who are free to set them up. But consumers also have freedom of choice, so businesses must take into account what consumers want or need. Traditionally, economists have focused on four factors of production: labor, capital, entrepreneurs, and natural resources. Information resources are now often included as well. Labor y the people who work for a company represent the first factor of production, labor. Sometimes called human resources, labor is the mental and physical capabilities of people. y employees who are well trained and knowledgeable can provide a real competitive advantage for a company. Capital y obtaining and using labor and other resources requires capital the financial resources needed to operate an enterprise.
