Textbook Notes (362,880)
Canada (158,081)
RSM100Y1 (431)
Chapter 1

chapter 1

9 Pages
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University of Toronto St. George
Rotman Commerce
Stojanovic Dragan

Chapter 1 Understanding the Canadian Business SystemTHE CONCEPT OF BUSINESS AND PROFITBusiness an organization that seeks to earn profits by providing goods and servicesProfit what remains if anything after a business expenses have been subtracted from its revenueBusiness must take into account what consumers want or needBusiness will not survive if there is no demand for its goods or servicesPromises to keep production consumption and employment growingBusiness profits enhance the personal income of owners and stockholdersBusiness taxes help support the government at all levelsSome businesses support charities and provide community leadershipECONOMIC SYSTEMS AROUND THE WORLDEvery country has its unique type of business depends on the kind of economic systemEconomic System the way in which a nation allocates its resources among its citizensFactors of ProductionKey difference between economic systems is the way they manage the factors of productionthe basic resources used to produce goods and services labour capitalFactors of Productionentrepreneurs and natural resourcesEconomists focus on four factors of production labour capital entrepreneurs and natural resourcesInformation resources are often included now too1 Labour y Labour human resources the mental and physical training and talents of people y Labourpeople who work for a company y Companies big ones require a labour force with a wide variety of skillsmanagerial geological transportation etc 2 Capital the funds needed to operate an enterprise y Capital y Obtaining and using labour and other resources requires capital y Needed to start a new business and to keep it going y Investmentsmajor source of capital3 Entrepreneurs
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