[COMM 1800] - Midterm Exam Guide - Everything you need to know! (26 pages long)
5 Oct 2016
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Document Summary
A business is an organisation recognized under the law, which attempts to create value by exchanging products with customers for money or money value. Law: has to be a legal activity, society gives us a franchise. For-profit business- makes profit that exceeds cost. Not-for-profit business- attempts to balance revenue and costs, must compete for revenue (from donors, etc). Benefits expected to be received in the present or future: Perceived value: evaluation of expected benefits: depends on quantity (amount of benefits), time (when we will experience benefits), risk (ex: branded vs unbranded). Determines how much you are willing to pay for something. Past- past in the past only discuss customer now and in the future. Stakeholder theory: role of owner and other stakeholders. People (employees)- acquire assets to create customer value and an operating profit. Revenue (reward for delivering customer value)- operating expenses (what you paay to employees and suppliers) = operating profit.
