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2020/21 Academic Year 1st Quarter General Business Lesson Note One for Grade 11

UNIT – ONE
The nature of business
Business- is a socio-economic activity that satisfies human needs and wants by providing goods
and services for profit to maintain and improve quality of life.
1. Business is a socio- economic activity- business is a social activity where large numbers of
people participate in it individually, or in group
2. Business satisfies needs and wants
- Business is our principal means of satisfying human needs and wants.
Needs- are basic forces that move a person to do something.
There are different types of needs
 Basic needs
 Social needs
 Psychological needs
 Physiological needs
 Individual needs
Social needs- are needs of affection and belonging to the group
Individual needs- are needs for self-growth and self-expression.
Wants- are preferences for something that are learned during a person's life.
3. Business provides goods and services- in meeting human needs and wants, business provides
goods and services to individuals' groups and organizations.
 goods and services are means by which people satisfy their needs and wants
 A business must provide its customers, where they are individuals or organizations, with
something that they need or want.
Goods- are material objects with a typical physical form or shape.
Example- tables, books, radio

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General Business Lesson Note one for Grade 11
Consumers- are people or individuals who buy products for their personal or family use.
 Are made up of individuals and families
 Everyone is a customer.

There are two types of goods.

1. Consumer goods- are goods that are purchased by individuals for personal or family use.
 They are usually are characterized by the level/extent of effort the individuals consumer
engages to obtain the goods. Based on the level of effort made, consumer goods are
classified into three categories.
A. Convenience goods- are goods that are bought by the consumer after little buying effort,
purchased frequently' bought by habit and available in numerous shops in most cases near to
the residence of the consumer.
B. Shopping good- are consumer goods that are bought after comparing several features of the product
 Their price is relatively higher than that of convenient goods
 Purchased infrequently and are nearby shops as they are sold in a limited number of
selected shop
e.g- clothes
C. Specialty goods- are goods bought by the consumer after a special buying effort , purchased
very infrequently and are sold in a few shops
 No substitute will be considered foe speciality goods
e.g diamonds, fine jewelry
Producers- are those people and organizations that convert inputs to a more useful product for
users. They are investors and organizations who supply money to initiate and sustained a
business.
Producer goods- are goods that are bought by individuals and organizations for further
processing or for use in operations not for personal consumption.

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General Business Lesson Note one for Grade 11