Business: an activity that seeks to provide goods and services to others while operating at a profit
Profit: The amount of money a business earns in revenue beyond expenses
Entrepreneur: a person who risks time and money to start and manage a business
Canada moving towards a service built economy instead of manufacturing
Stakeholders: Anyone with a vested interest in the company
Those who lose or gain:
Financial institutions (banks, credit unions)
Offshoring: Sourcing part of the purchased inputs outside of the country
Outsourcing: Assigning various functions, such as accounting, production, security, maintenance, and legal work to outside organizations
Five factors of production:
Week 2: Basic_Ch02
Word of the week: Analyze (definition, what does it really mean, how to use it)
Strategic Alliance: A relationship where both parties gain benefits from creating or fortifying a relationship
Outsourcing can be beneficial to the company and country but quality control is an issue for fields such as pharmaceuticals. Macroeconomics: Country’s economics
Microeconomics: Looks at behaviour of people and organizations in a certain market
Entrepreneurs: Make a lot of money fast (takes off) if it doesn’t work they move on
Stakeholders: All the people that stand to lose or gain from a companies policies or activities
Offshoring: Sourcing part of the purchased inputs outside of the country (product)
Outsourcing: contracting with other companies to do some or all of the functions of a firm such as production or accounting. (service)
Factors of Production: Resources used to create wealth
Land (or natural resources)
Capital Goods (Machines, tools, buildings, other production materials. Not money)
Business Environment: The surrounding factors that either help or hinder the development of business.
The legal and regulatory environment
Elimination of curruption
The economic environment
Income and exenditures
The technological environment
Information and technology
The competitive environment
-Components of competition
The social environment
The global environment
Encompasses all these characteristics
Around the world
Goods: Tangible products such as computers, food, clothing, cars, and appliances.
Services: Intangible products (i.e products that can’t be held in your hand) such as education, health care, insurance, recreation, and travel and tourism.
The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among carious competing groups and individuals.
Macroeconomics: The part of economic study that looks at the operation of a nation’s economy as a whole
Microeconomics: The part of economic, study that looks at the behaviour of people and organizations in particular markets.
Invisible hand: A phrase coined by Adam smith to decscribe the process that turn self-directed gain into social and economic benefits for all.
Capitalism: An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit
Supply: The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time.
Demand: The quantity of products that people are willing to buy at different prices at a specific time.
Market price: The price determined by supply and demand
Perfect competition: The market situation in which there are many sellers in a large market and no seller is large...