MGTA01H3 Chapter Notes - Chapter 1-2: Profit Motive
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MGTA01H3 Full Course Notes
Verified Note
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Document Summary
Business an organized effort to provide the things that people need and want, and are willing to pay for. Exists in order to satisfy customer needs and to make a profit. Customers people who need or want and are willing to pay for the things a business provides. Revenue the money flow that goes into a business every time it sells a product or service to a customer. Expenses the money that a business spends to provide customers with items. Profit the positive benefit of running a business (revenues expenses) The profit motive the idea that people will give up time, energy, and money only if there is incentive for them to do so. Otherwise rational people will save time and money. Loss when the revenue of a business generates is even less than the costs and expenses incurred.
