RSM100Y1 Chapter Notes - Chapter 1: Government Cut, Skilled Worker, Opportunity Cost
Document Summary
Business: all profit-seeking activities and enterprises that provide goods and services necessary to an economic system. Profit: rewards for businesspeople who take the risks involved in offering goods and services to customer. Not-for-profit organization: organization whose primary aims are public sercive not returning a profit to their owner. Factor of production: four basic inputs for effective economic operation: natural resource, capital, human resources, and entrepreneurship. Natural resources: all production inputs that are useful in their natural states, including agricultural land, building sites, forests and mineral deposits. Capital: production inputs consisting of technology, tools, information, and physical facilities. Human resources: production inputs consisting of anyone who works, including both physical labor and the intellectual inputs contributed by workers. Entrepreneurship: the willingness to take risks to create and operate a business. Private enterprise system: an economic system that rewards firms for their ability to identify and serve the needs and demands of customer.
