MGTA01H3 Lecture Notes - Canadian Business
16 Sep 2012
School
Department
Course
Professor
14
MGTA01H3 Full Course Notes
Verified Note
14 documents
Document Summary
Chapter 01 - understanding the canadian business system. Business - an organized effort to make or sell something, to sell to customers, who need or want something, in order to make a profit. A business exists because customers need and want things and they will pay for them. The money that comes in is revenue or sales. Pizza store needs to spend money on dough, ingredients etc which is the expenses or cost. Profit is the difference between the money in (revenue or sales) and the money out (costs or expenses) Fundamental reason for a business to exist. Not all organization are businesses; eg. hospitals, universities, churches. These do provide service, but not intended profit. Loss occurs when expenses are more than sales. It costs more to produce the products to run the business than the business can generate through sales. General motors (2008) loss billion. Chrysler (2008) loss of billion.
