MGTA01H3 Chapter Notes - Chapter 1: Canadian Transport Commission, Economic System, Perfect Competition
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MGTA01H3 Full Course Notes
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A canadian business is different in many ways from one in china. An economic system allocates a nations resources among its citizens. The key difference between economic systems is the way in which they manage the factors of production- the basic resources that a country"s businesses use to produce goods and services. The people who work for a company represents the first factor of production, labour. Sometimes called human resources, labour is the mental and physical capabilities of people. Employees who are well trained and knowledgeable can be a real competitive advantage. Obtaining and using labour and other resources requires capital- the financial resources needed to operate an enterprise. You need capital to start a new business and keep it running and growing. A major source of capital for small business is personal investment by owners. Investments can come from individual entrepreneurs, from partners who start a business together, or from investors who buy stock.
