MGTA05H3 Lecture Notes - Lecture 1: Fixed Cost, The Surplus, Outsourcing
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MGTA05H3 Full Course Notes
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The surplus of money when expenses are subtracted from revenue. The profit goes into the pockets of shareholders/owners (people who own partial of the business - only for corporations) Profits can also be used to invest into the company. Costs towards suppliers can decrease as well: purchasing less for from another supplier for the same amount of workload. Costs towards employees can decrease: usually done when employees are from overseas or countries with cheaper labour fees, outsourcing - paying someone else to do the work that the company would usually do. Costs towards properties can decrease: incentives - companies move to another area and offer to hire people from that district in return for a lower price, the company moves districts. Costs towards government taxes can decrease: moving to another district with lower taxes for companies. Expenses go into the pocket of suppliers, employees, government (taxes - income, sales, etc. utilities/property, creditors, distributors, marketers.
