MGTA01H3 Study Guide - Final Guide: Profit Motive, Blackberry Limited, Business Cycle

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Chris Bovid

Document Summary

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. 6 characteristics common to all businesses: a business is an organized effort. Customer: the people who need or want, and are willing to pay for the things that a business provides: a business generates revenue. Revenue: the money that flows into a business every time it sells a product or a service to a customer: a business incurs expenses. Expenses: the costs that a business incurs in its efforts to generate revenue: a business tries to make a profit. Profit: the positive benefit from running a business. Profit motive: the idea that people will give up their time, energy and money to start a business only if they realise some benefit doing so.