MGTA01H3 Lecture 1: MGTA01 LECTURE 1 summer 2015
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MGTA01H3 Full Course Notes
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>read chapter 1: understanding the canadian business system. Purpose of this chapter/lecture: set the scene, provide basic definitions, explain a few key theories. Main points of today"s lecture: definition of business , profit & loss, factors of production, economic systems. Business: an organized effort to make or sell something, to sell to customers who want of need something, in order to make a profit. Pizza shop is a business, so is a lemonade stand. Customers need and want things and they will pay for them. The money that comes in: revenues or sales (deduct all the costs from sales and you"ll get the profit) Mushrooms = 40 (add to this human labour) Profit: the difference between: money in (revenues or sales) & money out (costs or expenses) Profit: fundamental reason for a business to exist, not all organizations are businesses: eg hospitals, universities, churches. These do provide services but not intended for profit.
