… is any organisation that makes goods or provides services.
Needs and wants• YOUR NEEDS –>goods or services essential for living. (things you think are necessary for living).• YOUR WANTS -> goods or services that people would like to have, but are not essential for living. (things you would like to be able to buy and own).
• Goods and services are tangible and intangible goods that are produced and purchased in order to fulfill the needs and desires of consumers.
GOODS• Goods are simply any physical or tangible products that can be seen and touched. Some goods are quickly consumed and must be replaced by like or similar products on a regular basis.• Food is one example of goods that are quickly consumed and must be acquired repeatedly. Other forms of goods are more long-term in nature, and may last for years or even decades. Furniture, cutlery, and houses are examples of durable goods that are intended to satisfy consumers for extended periods of time.
SERVICESServices are intangible support that is provided tothe consumer in some manner.Example:A physician provides healthcare support orservices. Telephone companies providecommunications services such as local callingability, long distance calling, and other featuresthat enhance the electronic communicationprocess. Banks provide a range of financial servicesto customers, ranging from basic and checkingaccounts to investment opportunities.
Work in pairs - RevisionWhat is a business? DefinitionNeeds or Wants ?___________ -> goods or services that people would like to have__________ -> goods or services essential for living.Services and Goods. List some characteristics and provide examples.
Factors of production• Factors of production are those resources needed to produce goods or services.• These fators are limited in supplyFactors of production• Land• Labour• Capital• Enterprise
• Land -> covers all the natural resources provided by nature and includes fields and forests, oil, gas, metals and other mineral resources.• Labour -> efforts of people needed to make products.• Capital -> the finance, the machinery and equipment needed for the manufacture of goods.• Enterprise -> the skill and risk taking ability of the person who brings the other resources together to produce a good or service. Eg. The owner of a business is called entrepreneurs.
Levels of business activity -> There aremillions of businesses around us. Businesscan be categorised in three broadcategories or stages.
Levels of business activity -> There are millions of businesses around us. Business canbe categorised in three broad categories or stages.Primary Sector All those businesses which are related with extraction of raw material from Mother Nature such as mining, fishing, farming, and logging are known as Primary Sector businesses.
Secondary Sector All businesses which manufacture and process the raw materials which can be used by the end consumers are known as Secondary Sector businesses. These include building, construction, compute assembly, shoes factories, textile factories etc.
Tertiary Sector Whereas all the businesses which provide services and assist both the primary and secondary sector businesses can be classified as Tertiary sector businesses. These include transportation, insurance, hospitals, educational institutes, showrooms etc.
Example -> British Petroleum A business may exist in all the three sectors also. For example. British Petroleum has its own Oil wells and it extracts raw oil, this is _____________________, this oil is converted into petroleum and other by products. This is _____________________. After processing the oil into useable product BP sells it to end consumers through its network of Petrol pumps. This comes under _____________________.