MGTA05H3 Lecture 1: MGTA05 lecture 1 part 2
12
MGTA05H3 Full Course Notes
Verified Note
12 documents
Document Summary
Business and exchanges the economic system. That provides goods and services, or both, of value to customers. With the expectation of increasing value for the owners of the business, usually in the form of profits. Creates value by producing goods or services, or both. Realizes that value in transactions with customers. Businesses add value as they create their products and services. The value is allocated to various parties: You might even create the desire for a product that has not previously. Since value is realized through transactions, your customers must enter into transactions and pay for products and services. So marketing and pricing are both important. Suppliers obtain value through the prices they charge. Customers obtain value through prices they pay. Owners obtain value through the value that is not otherwise allocated. The amount of value generated by the business that is available to be allocated to the owners or investors is called profit .
