MGTA01H3 Chapter Notes - Chapter 1-7: Underemployment, Lorenz Curve, Gross Domestic Product

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

Document Summary

Business: an organised 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 must try to satisfy customers needs: customers: the people who need or want, and are willing to pay for, the things that a business provides. A business generates revenue from sales: revenue: the money that flows into a business every time it sells a product or a service to a customer, expenses: the money that a business spends, to provide customers with products. Businesses try to make a profit: profit: the positive benefit from running a business. Revenues minus expenses: the profit motive: the idea that people will give up their time, energy and money only if there is some incentive for them to do so.