Unit # 1: Understanding Business activity

Tore
Chapter # 1

Business Activity

.
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* Topics to be covered :
2) Services ; the non - tangible products sold to
La ) ( and : this general term includes not
only
-

include hotel accommodation

general public -
they the land itself but all the natural

Eg : forest
1) Preliminary concepts insurance services and educational services .
resources provided by nature .
,

2) Scarcity river
,
coal ,
crude oil

3) Opportunity cost

Specialisation its live required

y) and pros and cons
3) Needs : Needs are things we cannot ,
(b) Labour : number of workers

Business Activity essential for services

s
) and
they are
living . Example to produce goods and ,
they could

6) Value Addition food ,

water ,
shelter - be both skilled and unskilled

of addition
7) Importance value

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hoods and tangible goods ( and
1) : The physical
sold to the general public -
they . It is to note that wants are UNLIMITED (d) Entrepreneur : the person who possess

include durable consumer goods such as the skills and ability to combine all

cars and washing machines

,
and
)
s Factors of Production : these are the these above factors of production and

durable goods such which business to produce produce the goods and services for its
non - consumer as
rcsoi a uses

food ,
drinks and sweets which can be
goods and services for their customers .
There customers
, usually these people are the

used once . are four factors of production which a owner of the business .

business can use :

• It is to note that resources / fops are

LIMITED
 : ÷ ÷ f ÷ ÷ ÷ : i if
* Scarcity : the situation where there are not * Specialisation ( Division of labour : * Value Added : The difference between
# - #

to for of sold
enough resources
satisfy the wants the
selling price the products by
also the economic the production process is split into business and the cost of material
everybody .
Scarcity is when up a raw

'

problem that results from UNLIMITED WANT a different tasks and each worker performs one that it is bought is called value added .

Of
. )

LIMITED RESOURCES these tasks .

sellingprice-costofrawmalerialboug.tn
* Opportunity cost : the next best alternative Pros :
- #

item perform the task

given
=
up by choosing another t An employee who same

Example : tablet and mobile phone repeatedly is less likely to make mistakes

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:

to produce goods and services that satisfy -

Boredom from doing the same task

needs and wants of consumers with

the ,
usually repeatedly
the aim of making profits .

- If one worker is absent and no one can

replace him ,
the production process stops
 :/ !
provide additional advice for
* Illustration
-
: 3) expert

customers
your
price of Burger Rs
selling a = 800

) Improve 's design and packaging

Rid : u
your product

•
Buns Rs 40

Rs service for
•
Patty 250 s
) Improve customer your products
a
vegetables Rs so and services

. Sauces Rs 100

it important for business to add

*
Why is a

calculate the value added : value to its product ?

I

-360

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:

to workers , utility bills

,
taxes .

business add value to its

* How can a

product ?

r
) offer better quality to
your customers

2) Increase your delivery speed