RSM100Y1 Chapter Notes - Chapter 1: Invisible Hand, Interchangeable Parts, Outsourcing
Document Summary
Business: all profit seeking activities and enterprises that provide goods and services necessary to an economic system. Profits: rewards for businesspeople who take the risks involved in offering goods and services to customers. Not-for-profit organisations: organisations whose primary aims are public service, not returning a profit to their owners. Also sell merchandise or set up profit-making side business to sell goods. Exempt from federal / provincial / local taxes. Factors of production: four basic inputs for effective economic operation: natural resources, capital, human resources, and entrepreneurship. Natural resources: all production inputs that are useful in their natural states. Natural resources are the basic inputs required in any economic system and are the genesis of wealth creation. Places w/ valuable natural resources have economic advantage in developing more wealth. Technology: machinery & equipment e. g. computers & software. Helps company improve its own products -- e. g. netflix. Operate more smoothly by tracking deliveries, providing more efficient communication, analysing data.
