BUS 200 Chapter Notes - Chapter 1: Food Marketing, Planned Economy, Economic System
Business 200 Chapter 1
An organization that seeks to earn profits by providing goods and services
Profit
Whats remains after expenses are subtracted from revenue
Not for profit organization
an organization that provides goods and services to customers, but does not seek to make a
profit while doing so
Economic system
The way in which a nation allocates its resources amond its citizens
Factors of Production
Resources used to produce goods & services
Eg. Labor, capital, entrepreneurs, and natural resources
Entrepreneur
Individual who organizes and manages labour, capital, and natural resources to produce goods
and services to earn a profit, but who also runs the risk of failure.
People who accept the opportunities and risks involved in creating and operating a business.
Natural resources
Items used in the production of goods and services in their natural state.
eg. Land, Water, Minerals, Trees
Information Resources
find more resources at oneclass.com
find more resources at oneclass.com
Information such as market forecasts, economic data, and specialized knowledge of employees
that is useful to a business and that helps it achieve its goals
Command economy
an economic system in which government controls all or most factors of production and makes
all or most production decisions
Market economy
an economic system in which individuals control all or most factors of production and make all
or most production decisions
Communism
A type of command economy in which the government owns and operates all industries
Socialism
A kind of command economy in which the government owns and operates the main industries,
while individuals own and operate less crucial industries
Input market
Firms buy resources that they need in the production of goods and services
Output market
Firms supply goods and services in response to domand on the part of consumers
Capitalism
An economic system in which markets decide what, when, and for whom to produce
Mixed market economy
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
An organization that seeks to earn profits by providing goods and services. Whats remains after expenses are subtracted from revenue. Not for profit organization an organization that provides goods and services to customers, but does not seek to make a profit while doing so. The way in which a nation allocates its resources amond its citizens. Individual who organizes and manages labour, capital, and natural resources to produce goods and services to earn a profit, but who also runs the risk of failure. People who accept the opportunities and risks involved in creating and operating a business. Items used in the production of goods and services in their natural state. eg. land, water, minerals, trees. Information such as market forecasts, economic data, and specialized knowledge of employees that is useful to a business and that helps it achieve its goals.
