GMGT 1010 (Business and Society) QUIZ 1 STUDY NOTES SIMPLIFIED AND LATEST UPDATED UNIVERSITY OF MANITOBA

GMGT 1010 (Business and Society) QUIZ 1
STUDY NOTES SIMPLIFIED AND LATEST
UPDATED UNIVERSITY OF MANITOBA.

, GMGT Quiz 1

What is a national business system?
- How a society organizes its economic activities
o Business firms
o Governments
o Labour
o The Market
o Finance/investors

The Market
- Capitalism: An economic system that allows for private ownership of the means of
production (land, labour, capital) and assumes that economic decision making is in the
hands of individuals or enterprises who make decisions expecting it to earn a profit
o Equal opportunity but not necessarily equal outcome
o Buy/sell goods
o Intellectual property
o No government intervention
o Law enforcement
o Profit from the market

Three central means of capitalism
1. Wage labour
2. Private ownership of the means of production
3. Production for exchange and profit

Three types of capitalism
- Laissez-Faire Capitalism
o Minimum government intervention
o Government strictly limited to police and fire protection
o Ex. USA
- Stakeholder capitalism
o Business accepts broader responsibilities beyond financial responsibilities to
share holders
o Balance the needs of shareholders with stakeholders such as employees,
suppliers, customers, local communities
o Ex. Germany
- Clean Capitalism
o Incorporates social, economic, and ecological costs (and benefits) into the
marketplace and the prices we pay
o Externalities