RSM100Y1 Chapter Notes - Chapter 1: The Home Depot, Canadian Business, Transaction Processing
Document Summary
Business consists of all profit-seeking activities and enterprises that provide goods and services necessary to an economic system. Profits are rewards for businesspeople who take the risks involved to offer goods and services to customers. The request for profits is a central focus of business: without profits, a company could not survive. To succeed in the long run, companies must deal responsibly with employees, customers, suppliers, competitors, government, and the general public. Factors of production: four basic inputs for effective operation: natural resources, capital, human resources, and entrepreneurship. Natural resources: all production inputs that are useful in their natural states, including agricultural land, building sits, forests, and mineral deposits. Capital: production inputs consisting of technology (machinery, equipment, etc. ; things designed to improve production), tools, information, and physical facilities. Human resources: production inputs consisting of anyone who works, including both the physical labour and the intellectual inputs contributed by workers.
