MGTA05H3 Study Guide - Midterm Guide: Blackberry Limited, Profit Motive, Innovation Works
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MGTA05H3 Full Course Notes
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Business an organized effort to provide the things that people need and want, and are willing to pay for. A business exists in order to satisfy those customer needs, and also to make a profit. 6 characteristics common to all businesses: a business is an organized effort. Customer: the people who need or want, and are willing to pay for the things that a business provides: a business generates revenue. Revenue: the money that flows into a business every time it sells a product or a service to a customer: a business incurs expenses. Expenses: the costs that a business incurs in its efforts to generate revenue: a business tries to make a profit. Profit: the positive benefit from running a business. Profit motive: the idea that people will give up their time, energy and money to start a business only if they realise some benefit doing so.
