MGTA01H3 Lecture 1: MGTA01 - Chapter 1 Notes - What is a Business
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MGTA01H3 Full Course Notes
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Business: an organised effort to provide the things that people need and want, and are willing to pay for. A business exists in order to satisfy those customer needs, and also to make a profit. Profit motive: the idea that people will give up their time, energy and money only if there is some incentive for them to do so. If there is no pay-back for their self-sacrifice and risk, rational people will save their time and money. Loss: when the revenues that a business generates are not sufficient to cover all of the costs and expenses involved in running the business. In contrast, the profits of a business belong to the owner; he/she can spend them however they like. Products: things that result from human or mechanical effort or as the result of a natural process. Public sector organization: an organization that is owned by the government.
