MGTA01H3 Lecture : MGTA01 Sep 9- Lecture 1.docx
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MGTA01H3 Full Course Notes
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Document Summary
A key reason for a business to exist. They provide services but not intended for profit. Costs more to produce the products, and run the business, than the business generates through sales. General motors (2008) loss of bn (they didn"t sell enough cars; price of. Examples of loss-making businesses: metal went up; recession meant people didn"t buy enough; maybe had recalls; making too many types of cars; ugly, inefficient cars; they did everything wrong) The study of how businesses, people make choices about: There are basic building blocks used to produce anything. Factors of production i. e. human beings, workers computers, phones, hammers, tractors natural resources: raw materials found in ground, grown from earth, or harvested from nature. Capital: money, or machines and technologies that money can buy. entrepreneurs the people who assemble and organise the other factors of production, the individuals who make it all happen. Government owns/controls all the factors of production makes 100% of economic decisions.
