MGMT 1 Lecture Notes - Lecture 1: Invisible Hand, Malthusian Catastrophe, Free Trade
Goods, Services, and Products
- Goods: tangible products (computers, food, clothing)
- Services: intangible products (insurance, education, tourism)
- Products: both goods and services
Types of Businesses
- Manufacturing (e.g. Boeing)
- Service (e.g. Wells Fargo)
- Intermediaries (e.g. Target)
Service Industry
- Services make up over 70% of U.S. economy
Types of services:
Lodging and tourism
Personal
Entertainment (Hollywood)
Health
Financial (Wall Street)
Factors of Production (Resources)
- Land and other natural resources
- Labor (lots of changes because of technology)
- Capital (e.g., machines, tools, buildings)
- Entrepreneurship
- Knowledge
find more resources at oneclass.com
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Revenues, Expenses, Profit, Loss
- Revenues: total amount of money generated during a given time
period
- Expenses: total amount of money spent during a given time
period
- Profit: Revenues > Expenses
- Loss: Revenues < Expenses
- Profits and losses are "dynamic" (e.g., most startups don't
generate enough revenues to cover expenses for a while)
Standard of Living and Quality of Life
- Standard of living: amount of goods and services people can
buy with their money
- Prices for goods and services can vary greatly between different
countries (different taxes, different regulations)
- Quality of life: general well-being in a society going beyond $
(education, health care, environment)
Stakeholders
- Every person or organization impacted by or part of the business
world
- Examples:
Customers
Employees
Stockholders (co-own a corporation)
find more resources at oneclass.com
find more resources at oneclass.com
