MGTA01H3 Chapter 1: Chapter 1
What is a Business?
● Business is 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 with a definition.
Five Characteristics Common to All Business
Business are “Organised Efforts”
● one or more people has to have an idea, and has to put time, thought and
effort into carrying out that idea
A Business Provides Things that people need and want
● business like McDonalds or Burger King make hamburgers and French fried
potatoes.
○ they do this because they believe that people need and want good
tasting, inexpensive meals served quickly
● Microsoft exists because Bill Gates saw that people need software to operate
their computers.
A Business Must Try To Satisfy Customers Needs
● costumers:
○ the people who need or want, and are willing to pay for, the things that
a business provides
● e.g. you will start algebra tutoring business only if you think that there are high
school students - enough high school student- who want to improve their
grades in high school math.
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
● revenue is that customer decides that the product or service which the
business provides is worth paying for, and the customer agrees and intends to
pay.
● costs/expenses:
○ the money that business spends, to provide customers with products
Business Try to Make a Profit
● Profit
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MGTA01H3 Full Course Notes
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Document Summary
Business is 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 with a definition. One or more people has to have an idea, and has to put time, thought and effort into carrying out that idea. A business provides things that people need and want. Business like mcdonalds or burger king make hamburgers and french fried potatoes. they do this because they believe that people need and want good tasting, inexpensive meals served quickly. Microsoft exists because bill gates saw that people need software to operate their computers. A business must try to satisfy customers needs. Costumers: the people who need or want, and are willing to pay for, the things that a business provides.
