Lecture Note for MGTA03, Lecture 1

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Published on 19 Jul 2010
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Lecture Notes: Chapter 1
¾ Business Æ an organization that provides goods and services to customers in order to
make a profit
o People began to get their act together
o Organized effortÆ to provide goods and services
o They are supposed to make a profit
¾ Goods and Services
o Items that people need or want
o Items that people are willing to spend money on
¾ Customers
o People who buy goods and services from a business
¾ NOT ALL ORGANIZED EFFORTS ARE BUSINESSES
o EXAMPLE: CHURCH, SPORT TEAMS, UTSC
¾ Difference between business and other organized efforts is the PROFIT MOTIVE
¾ Profit
o Motive Difference between the money in(revenue/sales) and the money out
(cost/expenses)
¾ 60% of businesses have only 1 employee
¾ GM LVDEXVLQHVVWKDWWULHVWRPDNHDSURILWEXWLWGRHVQ¶W
¾ GM asked for a 25 billion dollar loan from US government
¾ Bad idea for US to do this because economy is in bad shape, comes out of tax payers
money and GM is going under anyways
¾ USA bailed out two major mortgage corporations: Fanny May and Freddy Mac(banks)
¾ The study of business is how to run an organization
o Students/Profs of business is how GM lost their money
¾ The study of economics is high level theories; the theories why customers buy what they
do, why they pay so much money for different products, why business sell what they do
o Students/Profs of economics think of environments that GM can thrive in
¾ Factors of Production
o Natural Resources
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