MGTA01H3 Lecture Notes - Lemonade Stand, Canadian Business
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MGTA01H3 Full Course Notes
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Document Summary
Chapter 1 lecture understanding the canadian business system. What is business: an organized effort to make or sell something, to sell to customers, who need or want something, in order to make a profit. Characteristics of a business: pizzeria exists because people might be hungry. Lemonade stand exists because people might be thirsty: customers need and want things and they will pay for them. The money that comes in = revenues (top line) or sales . Dough & cheese = 50 cents, mushrooms & green pepper = 40 cents, onion & paper plate. Profit (the margin) = the difference between: the money in (revenues or sales, the money out (costs or expenses) For example, business sells small plain pizza: revenue (sales) is 6 dollars a pizza and less expenses (costs) is 5 dollars, profit = 1 dollar. To increase profit: lower expenses or increase revenue.
