Mgmt1000, The Class Notes For The Chapter 1 Which Is Prepared For The Midterm Exam 1 - Guelph - Note Paper

708 words - 3 pages

Chapter 1 for Midterm1
Define the nature of Canadian business and identify its main goals;
Global economic systems, the factors of production, input and output markets;
The interactions between business and government in Ca.
Demand and supply
· Business- an organization that produces or sells goods or services in an effort to make a profit. (Canada, the world’s top country to do business
· Profit= Revenues - Expenses
· Not-for-profit organizations, such as Charities, educational institutions, hospitals, labor unions
· Factors of Production- Labor (Human resources), Capital, Entrepreneurs, natural resources and information
· Labor- mental and physical capabilities of people
· Capital- the funds that are needed to start a business and to keep it operating and growing;
Coming from personal investment by owners, the sale of stock to investors, profits from the sale of products and services, and funds borrowed from banks and other lending institutions
· Entrepreneurs- people who accept the opportunities and risks involved in creating and operating businesses.
· Natural resources (physical resource)-land, water, mineral resources, trees…
· Information-the specialized knowledge, expertise of people who work in businesses, information found in market forecasts and various other forms of economic data.
· Economic system allocates nation’s resources among its citizens
· Types of Economic Systems
Command economy, relies on a centralized government to control all or most factors of production and make all or most production and allocation decisions
Market economy: the mechanism for the exchange of goods and services
economic basis is supply and demand
Political basis is capitalism
Ownership of the factors of production is open
Buyers and sellers have freedom of choice, earn profits and compete
Mixed market economy-privatization私有化
· Command economies –communism: government owns and operates all industries, it makes resource distribution decisions
-socialism: government owns and operates critical industries (utilities and major institutions), individuals own non-critical businesses
China claim to be communist now contain elements of market-based economy
· Market-the mechanism for exchange between the buyers and sellers of a particular good or service.
· Input market & Output market
· Capitalism, allows provide ownership of the factors of production and encoura...

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