MGTA01H3 Lecture Notes - Lecture 1: Profit Motive
14
MGTA01H3 Full Course Notes
Verified Note
14 documents
Document Summary
Business: an organized effort to create or provide something that people want and will pay for to make a profit. Revenue: the money that goes to the business whenever it sells a product or a service to customers. Expenses (cost): the money that a business spends to provide the product. When revenue is more than costs it means business owners become wealthier. Loss: when revenue is less than costs it means business owners become poorer. The profit motive: the idea that people will give up their time, energy and money to start a business only if there is some incentive for them to do so. Products: things that result from human or mechanical effort or as the result of natural processes. In order for these activities to run, the government uses the tax money in order to obtain revenue: ex. Goods: products that can be held or touched.
