RSM100H1 Chapter Notes - Chapter 1: Virtual Community, Price Discrimination, Transaction Processing

• School: UTSG
• Department: Rotman Commerce
• Course: RSM100H1
• Professor: Michael Khan

Document Summary

Any activity that generates profits as well as companies who provide goods and services which contribute to the economy: ne(cid:272)essary to i(cid:373)pro(cid:448)e a (cid:374)atio(cid:374)"s sta(cid:374)dard of li(cid:448)i(cid:374)g, a mutually beneficial relationship between buyers and sellers. Consumers have a need for goods & services. Incentives for startups, growth, & high-quality competitive goods & services. Inputs necessary for effective operation: natural, capital, & human resources, & entrepreneurship. Natural resources: production inputs used in their natural states. Ex: land, building sites, forests, & mineral deposits. Capital: production inputs including technology, tools, information, & physical facilities: technological advancements can lead to new products, and improve efficiency in production, competitive firms must regularly upgrade their capital, suppliers of capital receive factor payments with interest. Human resources: production inputs consisting of the physical labour and the intellectual inputs of workers: hiring and keeping the right people matters, companies with talented and motivated employees are strong competitors.