MGTA01H3 Lecture 12: Management Lecture Notes
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MGTA01H3 Full Course Notes
Verified Note
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Document Summary
Customers need and want things and are willing to pay for them. Therefore businesses work to provide services or products and to make a profit in order to run. Since the customers pay, they must get something in return: example: a pizza business must provide a slice of pizza for the amount they charged. Expenses: the money that goes out to run the business and provide the product. It may cost the business to provide a product or service: example: it costs money to provide a pizza. The dough, cheese, paper plate and toppings all add up to a certain amount. Profit the difference between revenue and expenses: profit = revenue expense, example: the pizza business must charge a more than how much it costs to make that slice of pizza in order to gain a profit. People can chose to make a donation: example: university is not a business.
