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All lecture notes for lectures 1 and 2 on chapter 1, information is very similar to textbook material

Management (MGT)
Course Code
Chris Bovaird

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CHAPTER 1 – Understanding the Canadian Business System
Slide 4: A business is an organization; a business is an organized effort to make/produce/supply
something or make something available to sell to customers who need/want something in order to
make a profit
Slide5: The vast majority of businesses are owned by ‘regular people’ and are not huge
corporations. (Independently owned pizzerias = business = lemonade stand)
Slide 9: Business Characteristics
Businesses exist because customers need/want things and will pay for them.
Slide 10: Money that comes into a business is calledRevenue’ or ‘Sales
Slide 12: The profit of a business is the difference between the money that comes in (revenue)
and the money that goes out (expenses). The purpose of the business is to make sure that more
money comes in than goes out (so that a profit can be made).
Slide 15: The fundamental reason for a business to exist is PROFIT.
Not all organizations are businesses (i.e. hospitals, universities, churches). Organizations can
provide services without the intent of gaining profit.
Slide 16: Profit vs. Loss
Not all businesses are successful in what theyre trying to do. A loss occurs when expenses total
more than sales. When there is a loss, it means that it costs more to produce the products and run
the business, than the business can generate through sales.
CHAPTER 1 – Understanding the Canadian Business System
Slide 4: Factors of Production: basic building blocks used to produce anything; necessities of a
business. Four factors of production are needed for a business to function: natural resources,
labour, capital, entrepreneurs.
Mid-70s – theory was that there was only 3 factors of production, but now there are 4 (textbook
says 5)
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