MGTA01H3 Chapter Notes - Chapter 1: Market Economy, Bes, Oligopoly
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MGTA01H3 Full Course Notes
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Business: organization that produces or sells goods/services to make a profit. Profit: the money remained after revenue - expenses = profit. Expenses: the money spend on producing goods and/or running business. Revenues: the money earned when selling goods/services: business profits increase personal incomes & business taxes support government. Economic system: the way a nation allocates its resources among its citizens: economic systems differ in ways of who controls and owns resources. Labour: mental and physical training and talents of people: employees who are well trained is an advantage to a business. Capital: funds needed to operate a business: funds come from personal investment, shares, revenues. Entrepreneurs: one who organizes factors of production to earn a profit (risky) Natural resources: items used to make goods/services from natural states. Information resources: useful information used to help business achieve goals. Command/planned economy: government owns and operates all industries: communism: government owns/controls all of the factors of production, makes almost.