MGTA01H3 Chapter Notes - Chapter 1: Nonprofit Organization, Profit Motive

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

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. Businesses would not, and cannot exist, unless there are people who need or want and are willing to pay for the things that those businesses produce. Customers: the people who need or want and are willing to pay for, the things that a business provides. O(cid:373)e (cid:271)usi(cid:374)esses refer to their (cid:272)usto(cid:373)ers as (cid:272)lie(cid:374)ts. (cid:862)clie(cid:374)t(cid:863) is (cid:373)ost (cid:272)o(cid:373)(cid:373)o(cid:374)l(cid:455) used to refer to people who use the services of a professional: a business generates revenue from sales. The money that a business receives from its customers is called a revenue money that flows 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 products: businesses try to make a profit.