RSM100Y1 Chapter Notes - Chapter 1: Invisible Hand, Trade Union, Human Resources
Document Summary
Lo 1. 1 distinguish between business and not-for-profit organizations. Business: all profit-seeking activities and enterprises that provide goods and services necessary to an economic system. Business provides the means for improving a nation"s standard of living. Involves an exchange between a buyer and a seller. Profits: rewards for businesspeople who take the risks involved in offering goods and services to customers. Accounting pov: profits = revenue expenses. Primary source of fund for expanding operations. Not-for-profit organizations: organizations whose primary aims are public service, not returning a profit to their owners. Private sector: museums, libraries, trade associations, charities, religious organizations. Public sector: government agencies, political parties, labour unions. Need to raise money to operate and achieve their social goals: funding from government sources or donations. Sometimes they will sell merchandise or set up other profit-making businesses to generate more funding. Lo 1. 2 identity and describe the factors of production. Factors of production: four basic inputs for effective economic operation.
