MGTA01H3 Chapter Notes - Chapter 1: Profit Motive, Voice Of The Customer, Toothpaste
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MGTA01H3 Full Course Notes
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Chapter 1: what is a business: 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. A business provides things that people need and want: a business responds to an occurring need or want, e(cid:454). M(cid:272)do(cid:374)ald"s caters fast food to people who want inexpensive food served quickly. A pizza company must purchase ingredients to make pizza to sell to customers: these expenses must be subtracted from the revenue. In addition, other costs for the businesses include maintaining factories and warehouses where the products are made, and creating advertisements that will be shown through various mediums. If there is no pay-back for their self-sacrifice and risk, rational people will save their time and money: essentially a (cid:271)usi(cid:374)ess o(cid:449)(cid:374)er"s desire to re(cid:272)ei(cid:448)e so(cid:373)e (cid:271)e(cid:374)efit fro(cid:373) their (cid:271)usi(cid:374)ess.
