mgt lec notes
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Chapter 1 Notes (from the book)
Business: an organization that seeks to earn profits by providing goods and services.
Profit: what remains after a business’s expenses are subtracted from the revenue(sales)
Expenses: money spent on running the business itself.
Revenues: the money earned by the business as they sell their products or services
Profits are rewards earned in return of the risk, time and money that the business owners
Profits are very large if the business is managed well
Most profitable companies in 2005: RBC, Manulife, Imperial Oil
Non profitable organizations such as hospitals, churches, and universities, are not
businesses. They provide services but not for a profit.
In order for a business to flourish, the owner/managers must take into account what the
consumers’ needs are. A business will not survive if there is no demand for the
products/services it is offering.
The business can be successful if they recognize unmet consumer needs and try to fulfil
them; or they recognize that the current businesses providing the same product/service are
not effectively doing so, and the owner thinks he can do a better job at it.
“In other words, someone who can spot a promising opportunity and then develop a plan for
capitalizing on it can succeed.”
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