MGMT 1000 Chapter Notes - Chapter 1: Planned Economy, Canadian Business, Economic System
27 Oct 2018
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Profit: an organization that seeks to earn profits by providing goods and services, what remains (cid:523)if anything(cid:524) after a business"s expenses are subtracted from its sales revenues. 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 among its citizens. Information includes the specialized knowledge and expertise of people who work in businesses, as well as information that is found in market forecasts and various other forms of economic data. Economic systems manage the factors of production in different ways: Command economy: relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions. Market economy: individuals producers and consumers make production and allocation decisions through the mechanism of supply and demand.
