MGTA01H3 Lecture : mgt lec notes

51 views1 pages

amethystbutterfly830

7 Feb 2011

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

noahrosa0429 and 39878 others unlocked

MGTA01H3 Full Course Notes

Verified Note

14 documents

Document Summary

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 spent. 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.

Related Questions

A diversified company's business units exhibit good financial resource fit when

A.the resource requirements of each business exactly match the company's available resources.

B.each business is a cash cow.

C.a company has the resources to adequately support the requirements of its businesses as a group without spreading itself too thin and when individual businesses add to a company's overall strengths. each business is sufficiently profitable to generate an attractive return on invested capital.

D.each business unit produces large internal cash flows over and above what is needed to build and maintain the business.