MGTA01H3 Lecture Notes - Lemonade Stand, Lemonade, Canadian Business
19 Nov 2012
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MGTA01H3 Full Course Notes
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Sept. 12, 2011 an organized effort (between one or more people), to make or sell something, to sell to customers, who need. Business: or want something, in order to make a profit. example pizza business, lemonade stand. Customers need and want things and they will pay for them. Examples : pizza exists because they believe that people might be hungry lemonade exists because they believe that people might be hungry. The difference between revenues (sales) and expenses (costs) Not all organizations are businesses: e. g. hospitals (aim to break-even), universities, churches. These do provide services: but not intended for profit. Loss: ie. it costs more to produce the products, and run the business, than the business can generate through sales. General motors (2008) loss of bn. Banks loaning more than needed, hence people buy bigger mortgaged-houses that they can"t afford. People"s house values decreased, hence they don"t have enough to pay back.
