FM 116 term paper
Ch. 1
Business: Individuals or organizations who try to earn a profit by providing products that satisfy people’s needs.
Product: a good or service with tangible or intangible characteristics that provide satisfaction and benefits
Profit: the difference between what it costs to make and sell a product and what a customer pays for it
Nonprofit organizations: organizations that may provide goods or services but do not have the fundamental purpose of earning profits
Stakeholders: groups that have a stake in the success and outcomes of a business
Economics: the study of how resources are distributed for the production of goods and services within a social system
Factors of production (the resources that are used to produce goods and services): Natural resources, human resources and financial resources.
Natural resources: land, forests, minerals, water, and other things that re not made by people.
Human resources: the physical and mental abilities that people use to produce goods and services also called labor.
Financial resources: the funds used to acquire the natural and human resources needed to provide products; also called capital.
Economic system: a description of how a particular society distributes its resources to produce goods and services. (Includes: communism, socialism, and capitalism) An economic system is the combination of policies and choices made by a nation regarding the ownership of capital and where economic decisions are made.
Communism: first described by Karl Marx as a society in which the people, without regard to class, own all the nation’s resources. In his ideal political-economic system, everyone contributes according to ability and receives benefits according to need. Private property is eliminated and government owns all the major forms of production and makes all economic decisions. Ex. North Korea, Cuba, China is transitioning.
Socialism: an economic system in which the government owns and operates basic industries but
Business: Individuals or organizations who try to earn a profit by providing products that satisfy people’s needs.
Product: a good or service with tangible or intangible characteristics that provide satisfaction and benefits
Profit: the difference between what it costs to make and sell a product and what a customer pays for it
Nonprofit organizations: organizations that may provide goods or services but do not have the fundamental purpose of earning profits
Stakeholders: groups that have a stake in the success and outcomes of a business
Economics: the study of how resources are distributed for the production of goods and services within a social system
Factors of production (the resources that are used to produce goods and services): Natural resources, human resources and financial resources.
Natural resources: land, forests, minerals, water, and other things that re not made by people.
Human resources: the physical and mental abilities that people use to produce goods and services also called labor.
Financial resources: the funds used to acquire the natural and human resources needed to provide products; also called capital.
Economic system: a description of how a particular society distributes its resources to produce goods and services. (Includes: communism, socialism, and capitalism) An economic system is the combination of policies and choices made by a nation regarding the ownership of capital and where economic decisions are made.
Communism: first described by Karl Marx as a society in which the people, without regard to class, own all the nation’s resources. In his ideal political-economic system, everyone contributes according to ability and receives benefits according to need. Private property is eliminated and government owns all the major forms of production and makes all economic decisions. Ex. North Korea, Cuba, China is transitioning.
Socialism: an economic system in which the government owns and operates basic industries but