Chapter notes for midterm
September 25, 2025 9:17 AM
Chapters to go over:
1 - the business environment, the factors of production
6 - similarities and differences between the form of business ownership
7 - challenges of small businesses, mistakes small businesses often make
12 - steps in determining a firms human resource needs, steps in selection, steps in performance
appraisal
13 - tactics of unions and management, the collective bargaining process, figure 13.5
Chapter 1
Business Fundamentals
Success in a business is often based on the strategy of finding a need and filling it.
- Goods are tangible
- Services are intangible
A business is an activity that seek to provide goods and services to others while operating at a profit
- Entrepreneur who risks time and money to start and manage a business
- Entrepreneurship is accepting the risk of starting and running a business
○ Entrepreneurs learn that business need accountant, good lawyer and strong managers.
- Revenue is the total money received during a given period for goods sold and services rendered
and from other financial sources
- Profit is the amount of money a business earns above and beyond what it spends for salaries and
other expenses.
- Loss occurs when a business expenses are more than its revenue
○ Avg 90151 disappear each year
○ Reported as exits by Innovation, science and economic development Canada
○ Decrease of about 48000 small, medium businesses
- Risk refers so the chance of loss, probability of loss and the amount of possible loss
- Standard of living refers to the amount of goods and services people can buy with the money they
have
○ Canada has the highest standard of living
- Quality of life refers to the general well-being of a society on term of its political freedom, natural
environment, education, health care, safety, amount of leisure and rewards that add to the
satisfaction and joy that other goods and services provide
- Stakeholders are all of the people who stand to gain or lose by the policies and activities of a
business and whose concerns the business needs to address.
1E03 BEO Page 1
, - Offshoring entails sourcing part of the purchased inputs outside the country.
- Outsourcing means contracting with other companies to do some or all of the functions of a firm,
such as a product or accounting - affect the boundaries of the firm - what production takes place
within the firm and what is purchased from outside firm
- Insourcing initiates return jobs to companies in various industries
- A non-profit organization is an organization that strive for financial gains because revenue is
needed to operate, but gains are used to meet their social or educational goals rather than
personal or stakeholder profit
- Social entrepreneurs are people who use business principles to start and manage non-profit
organization and help address social issues
○ Social enterprises include a central social or ethical mission as well as income generation for
those who work in the organization through commercial activity
1. Land(or natural resources)
2. Labour(workers)
3. Capital(machines etc.)
4. Entrepreneurship(willing to take risk)
5. Knowledge(information)
Factors of production refers to the resources used to create wealth
- Business environment are the factors that either help or hinder the development of a business
1. The legal environment
a. Regulations consist of restrictions that provincial and federal laws place on businesses with
respect to the conduct of activities
b. Laws - also known as acts
2. The economic environment
a. Income, expenditures and resources
b. Degree of entrepreneurship
3. The technological environment
a. Information technology (IT) change how people communicate with each other
b. This process of change is referred to as creative destruction
c. E-commerce is growing (136billion dollars of goods sold)
d. e-business is the information system or application
e. Database is an electronic storage file
f. Identity theft
g. Social media Is also used for crowdsourcing - find solutions to challenges
4. The competitive environment
1E03 BEO Page 2
, 4. The competitive environment
a. Entre
b. Buyer and suppliers
c. Competitors and substitutes
d. Empowerment means must allow workers to make other decisions essential to producing
high-quality goods and services
5. The social environment
a. Demography study of human population (size, density, age, gender, income)
b. Aging population
c. Diversity
6. The global environment
a. Climate change
b. Saving energy and causing less harm is greening
c. Sustainability
Evolution of canadian business
Agricultural and manufacturing, service industries since the 19th century has developed.
○ Manufacturing
○ Construction
○ Utilities
○ Agriculture
○ Forestry
○ Fishing
○ Mining
○ Quarry
○ Oil and gas industries
○ Steel
○ Railroads
○ Machine tools
- 79% works in service sector
- Intellectual capital includes employee knowledge and skills
Economic indicators are are reviewed by businesses are
- Inflation
- Unemployment rates
- Productivity
1E03 BEO Page 3
September 25, 2025 9:17 AM
Chapters to go over:
1 - the business environment, the factors of production
6 - similarities and differences between the form of business ownership
7 - challenges of small businesses, mistakes small businesses often make
12 - steps in determining a firms human resource needs, steps in selection, steps in performance
appraisal
13 - tactics of unions and management, the collective bargaining process, figure 13.5
Chapter 1
Business Fundamentals
Success in a business is often based on the strategy of finding a need and filling it.
- Goods are tangible
- Services are intangible
A business is an activity that seek to provide goods and services to others while operating at a profit
- Entrepreneur who risks time and money to start and manage a business
- Entrepreneurship is accepting the risk of starting and running a business
○ Entrepreneurs learn that business need accountant, good lawyer and strong managers.
- Revenue is the total money received during a given period for goods sold and services rendered
and from other financial sources
- Profit is the amount of money a business earns above and beyond what it spends for salaries and
other expenses.
- Loss occurs when a business expenses are more than its revenue
○ Avg 90151 disappear each year
○ Reported as exits by Innovation, science and economic development Canada
○ Decrease of about 48000 small, medium businesses
- Risk refers so the chance of loss, probability of loss and the amount of possible loss
- Standard of living refers to the amount of goods and services people can buy with the money they
have
○ Canada has the highest standard of living
- Quality of life refers to the general well-being of a society on term of its political freedom, natural
environment, education, health care, safety, amount of leisure and rewards that add to the
satisfaction and joy that other goods and services provide
- Stakeholders are all of the people who stand to gain or lose by the policies and activities of a
business and whose concerns the business needs to address.
1E03 BEO Page 1
, - Offshoring entails sourcing part of the purchased inputs outside the country.
- Outsourcing means contracting with other companies to do some or all of the functions of a firm,
such as a product or accounting - affect the boundaries of the firm - what production takes place
within the firm and what is purchased from outside firm
- Insourcing initiates return jobs to companies in various industries
- A non-profit organization is an organization that strive for financial gains because revenue is
needed to operate, but gains are used to meet their social or educational goals rather than
personal or stakeholder profit
- Social entrepreneurs are people who use business principles to start and manage non-profit
organization and help address social issues
○ Social enterprises include a central social or ethical mission as well as income generation for
those who work in the organization through commercial activity
1. Land(or natural resources)
2. Labour(workers)
3. Capital(machines etc.)
4. Entrepreneurship(willing to take risk)
5. Knowledge(information)
Factors of production refers to the resources used to create wealth
- Business environment are the factors that either help or hinder the development of a business
1. The legal environment
a. Regulations consist of restrictions that provincial and federal laws place on businesses with
respect to the conduct of activities
b. Laws - also known as acts
2. The economic environment
a. Income, expenditures and resources
b. Degree of entrepreneurship
3. The technological environment
a. Information technology (IT) change how people communicate with each other
b. This process of change is referred to as creative destruction
c. E-commerce is growing (136billion dollars of goods sold)
d. e-business is the information system or application
e. Database is an electronic storage file
f. Identity theft
g. Social media Is also used for crowdsourcing - find solutions to challenges
4. The competitive environment
1E03 BEO Page 2
, 4. The competitive environment
a. Entre
b. Buyer and suppliers
c. Competitors and substitutes
d. Empowerment means must allow workers to make other decisions essential to producing
high-quality goods and services
5. The social environment
a. Demography study of human population (size, density, age, gender, income)
b. Aging population
c. Diversity
6. The global environment
a. Climate change
b. Saving energy and causing less harm is greening
c. Sustainability
Evolution of canadian business
Agricultural and manufacturing, service industries since the 19th century has developed.
○ Manufacturing
○ Construction
○ Utilities
○ Agriculture
○ Forestry
○ Fishing
○ Mining
○ Quarry
○ Oil and gas industries
○ Steel
○ Railroads
○ Machine tools
- 79% works in service sector
- Intellectual capital includes employee knowledge and skills
Economic indicators are are reviewed by businesses are
- Inflation
- Unemployment rates
- Productivity
1E03 BEO Page 3
