Management Mid Notes.docx

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Management (MGT)
Zachariah Campbell

Management Mid-Term Notes Prof. McConkey Business: Chapters 1-5 Chapter 1 The Concept of Business and Profit - Business: an organization that produces/sells goods or services in an effort to make a profit - Profit: the money that remains (if any) after a business’s expenses are subtracted from its revenues (P=R-E) o Reward business owners for taking time & money risks o Among most profitable – RBC, Manulife Financial, Imperial Oil Ltd. - Expenses: the money a business spends producing its goods & services & generally running the business, “costs” - Revenues: The money a business earns selling its products & services, “sales” - Businesses exist to earn profits for owners who are free to set them up o Businesses must consider what consumers want/need when wanting to make profits, need a demand for its services - Consumers also have freedom of choice - Spot a promising opportunity & develop a good plan for capitalizing on it - Healthy business climate = good standard of living Economic Systems Around the World - Economic systems help determine how an organization operates - Economic system: the way in which a nation allocates its resources among its citizens – differ in terms of who owns & controls resources – “factors of production” - Factors of production: the resources used to produce goods & services: labour, capital, entrepreneurs, natural resources, & information resources o Labour  The mental & physical training & talents of people; sometimes called human resources  People who work for a company  Smart & trained employees = competitive advantage o Capital  The funds needed to operate an enterprise  Needed to start a business, to obtain labour & other resources  Small business = personal investment  Investments can come from individual entrepreneurs, partners, investors that buy stock  Revenue = key & ongoing source of capital for a running business o Entrepreneurs  An individual who organizes & manages labour, capital, & natural resources to produce goods & services to earn a profit, but who also runs the risk of failure  Accept opportunities & risks ; Jimmy Pattison, Izzy Asper, James Kimsey (AOL), Donald Trump o Natural Resources  Items used in the production of goods & serices in their natural
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