MGTA05H3 Lecture Notes - Lecture 1: Profit Motive
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MGTA05H3 Full Course Notes
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Business: an organized effort, to create or provide something that people want, and will pay for, in order to make a profit(cid:15910)hospitals, university, churches are not for profit organizations, since they are not intended for profit(cid:15911) The business also incur expense while providing good or service to the customer: business try to make profit: profit is the positive benefit from running a business. It"s the essential motivation for starting a business. Loss is when revenue generated are not sufficient to all cost and expense involved in running business: willing to take risk. The profit motive": people give up their time, energy and money only if there is some incentive for them to do so. If there"s no pay-back for their self-sacrifice and risk, rational people will save the time and money. Not for profit organization: an organization that may provide products or services and revenue, but not intended to make profit.
