MGTA01H3 Lecture Notes - Planned Economy, Liquor Control Board Of Ontario

• School: UTSC
• Department: Management (MGT)
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Today"s lecture (pages 7 12 from textbook) The basic/fundamental building blocks used to produce anything are called factors of production. There are 4 factors of production of a business are: natural resources raw material found in the ground, grown from the earth, or harvested from nature. Most businesses require some amount of money to start and some kind of technology. In much of the 20th century people believed that governments were responsible for organizing and running businesses, they were nationalized and state-owned. In the 70s and 80s, people realized that government wasn"t doing a pretty good job. 1970s one more factor of production was added: Entrepreneurship: society needs people who want to assemble and organize the other factors as without motivation and ambition, no businesses would exist. You don"t need to have all of them to run a business except entrepreneurship. Different countries have had different approaches about who should own the factors of production.