MGTA01H3 Chapter Notes - Chapter 1: Profit Motive, Voice Of The Customer, Canadian Business

• School: UTSC
• Department: Management (MGT)
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Expenses the money that a business spends, to provide customers with product/service products: businesses try to make a profit. Business organized effort to provide the things that people need/want, and are willing to pay for; also exists in order to satisfy customer needs and to make a profit. Five characteristics common to all businesses: businesses are organized efforts . Customers/clients the people who need or want, and are willing to pay for, the things that business provides: a business generates revenue from sales. Revenue money that flows into a business every time it sells a. Profit positive benefit of running a business; revenue minus expenses. Profit motive idea that people will give up their time, energy and money only if there is some incentive for them to do so. If there is no pay-back for their self-sacrifice and risk, rational people will save their time and money.