PENNY INTERNATIONAL COLLEGE

JSS I BUSINESS STUDIES

FIRST TERM SCHEME OF WORK

WEEKS: TOPICS:

1. INTRODUCTION TO BUSINESS STUDIES:

- meaning, importance, components, career opportunity.

2. THE OFFICE:
- meaning, types, functions, different offices in an organization.

3. OFFICE STAFF:
- meaning, functions, qualities, confidentiality of office information.

4. RIGHT ATTITUDE TO WORK:

- meaning, attributes, devotion to duty.

5. THE DEPARTMENT IN AN OFFICE/ORGANIZATION:

- different department in an organization, function of the various department.

6. INTRODUCTION TO COMMERCE:
- meaning, importance, activities which aids Commerce.

7. DIVISION OF COMMERCE:

8. PRODUCTION:
- meaning, types, effects of production on environment/society.

9. Revision.

10. Examination.

STUDY TEXTBOOK: Macmillan JSS Business Studies Book 1, (Revised in line

with NERDC 2012 Curriculum), by Awoyokun A. A., Akangbe Folaranmi A. O.,
Arukwe O. N. and Abdullahi I. M.
 WEEK 1:
Learning Objectives:
By the end of this lesson, students should be able to:
i. explain the meaning of Business and Business Studies.
ii. state the importance of Business Studies.
iii. identify the components/elements of Business Studies.
iv. list career/employment opportunities in Business Studies.

TOPIC: INTRODUCTION TO BUSINESS STUDIES

What is business?
Business can be defined as any legal activity which is performed to provide goods and
services in order to satisfy human needs and desires. In other words, business is any
activity engaged upon by an individual in order to earn a living.

Functions of business:
Business performs the following function in our society:
1. It provides employment for people.
2. It improves the standard of living.
3. It brings a reward to economic activity.
4. It enables profits making.
5. It provides raw materials for the production of goods.
6. It makes good and services available to consumers.
7. It enables one to earn a living.
8. It enhances development.

What is Business Studies?

Business Studies can be defined as a pre-vocational subject that deals with the study
of various methods and activities which are used in organizing and running a business.

Importance of Business studies:

The following are the reasons for studying business studies:
1. It facilitates the development of business skills.
2. It offers opportunity for gainful employment.
3. It enables people to set up a profitable business.
4. It educates people on how to manage their business effectively.
5. It enables people to be self-reliant i.e. becoming independent traders.
6. It enhances financial and management skills.
7. It provides opportunity for appropriate career selection.
8. It facilities investment decisions.
9. It educates people on office works and procedures.
10. It educates people on how to manipulate typewriter and computer.
11. It teaches us how to enter transaction into the appropriate books of account.
12. It enables individual to keep proper record Component/Scope of Business studies
of documents.
Element/component/scope of Business Studies:
Business studies comprises of the following courses:
1. Office practice.
2. Commerce.
3. Shorthand.
4. Typewriting/keyboarding.
5. Book keeping and Accounting.

Office practice: This is the study that deals with the activities which are performed in
the management of an office for effective business.
Commerce: The study deals with the activity of buying, selling and distribution of goods
and services to the final consumers. Commerce is the heart of a business.
Shorthand: This is the system of representing spoken words or sounds in written signs
and symbols. Shorthand is the magic of Secretaryship. A person that can type and also
write in shorthand is called a Stenographer.
Typewriting(keyboarding): This is the system of transforming handwritten manuscript
into typed form with the use of a machine called “Typewriter”. Keyboarding/typewriting is
communication tool. A person that can type is called a Typist. A room where
typewriters are safely kept is called Typing pool.
Book keeping: This is the art of recording daily business transaction in a systematic,
appropriate and orderly manner.
Accounting: This is the system of collecting, organizing, recording, analyzing and
reconciling all financial information of an organization.Book keeping and accounting are
the soul of enterprise.

Career opportunities in business studies:

Meaning:
Career means an occupation or profession that an individual devotes his or her lifetime
upon in order to earn a living.
Business Studies opens the door of opportunity for people to become any of the
following:
1. A business man or woman.
2. A trader, an office clerk.
3. A professional business tycoon.
4. A manager, a consultant.
5. A banker, a book keeper, a store keeper.
6. A secretary, a finance expert.
7. A typist, a computer operator.
8. A cashier, a bursar, an accountant.
9. A stock broker.
10. A sales representative (male/female).
11. A marketer, a transporter.
12. A producer or manufacturer.
13. A receptionist.
14.A stenographer.
15. An auditor.
16. An administrator.
17. An economist.
18. An entrepreneur.
19. A teacher, a facilitator, an educationist etc.

ASSIGNMENT 1:
i. 1. What is Business and Business Studies?
2. Mention two types of businesses which are done for profit.
3. list five components of Business Studies.
4. List at least five career opportunities in Business Studies.

ii. Refer to: Macmillan Business studies Book 1, Page 3; Objective Questions 1- 5.

WEEK 2:

Learning Objectives:
By the end of this lesson, students should be able to:
i. define an office.
ii. differentiate between the two types of office.
iii. mention the functions of an office.
iv. list two offices in their school.
v. list four items that can be found in an office.

TOPIC: THE OFFICE

Definition:
An Office can be defined as a room in an organization where all clerical and
administrative functions are performed.

Functions of an office
The following function are performed in an office
1. R-Receiving information
2. A-Arranging information
3. S-Safe guarding information
4. R-Recording information
5. G-Giving information
6. P-Processing information
7. F-Filing of document

Receiving information: Information received in an organization, is directed to the

appropriate quarters for processing.

Processing information:For effective utilization of information received, the clerk in

charge has to sort the information according to the purpose.
Recording information:The information is recorded for future use(i.e.for reference
purpose). This is to avoid forgetfulness.

Arranging information:Information must be arranged in an orderly manner for easy

retrieval. Information is arranged through collecting, sorting, grouping and filing.

Safe guarding information:Company information and assets must be kept secret and
safe by filling in order not to jeopardize the company’s image.

Giving information: Information is disseminated (pass out) to where they are needed by
sending letters, telephone, messages,fax machine order.

Different offices in an organization (School):

There are different offices in an organization/school, such as:
1.) Principal’s and vice principal’s office, bursar’s office or accounts 0ffice,
2.) Staff room
3.) Admission/Administrative office.
4.) Secretaryoffice
5.) Guidance/counselor’s 0ffice
6.)Recreational office
7.) Library, computer room, typing pool
8.) Wages office, general office,(registry),postage office etc.

Items found in an office : Items found in an office are things used for comfortable and
efficient performance of office work done such as file cabinet, book shelves, telephone,
letter tray, stationary, world map, globe, calculators, perforators, photocopier, printer,
scanner, computer, intercom, shredding machine, and stapler.

Types of office:
An office is classified into two types namely;
a.) Office by Size.
b.) Office by Administrative structure.

i) OFFICE BY SIZE:This is described as the dimension of the room i.e. how

spacious it is.

Types of office by size:

There are two types of office by size. They are:
1. Small office. 2. Large office.

1.) Small office: This is a type of office which is usually small in size with a limited
number of staff. Examples of small office include; principal’s office, bursar’s office
etc.
Advantages of small office:
1. There is close relationship between workers.
 2. Various duties are performed, thereby educating workers on different field.
3. There is no specialization.
4. There is proper supervision of job.

Disadvantage of small office:

1. The wages or salary is small.
2. Only few number of equipment are contained in small office.

2.) Large office: This is a type of office which is usually big in size.it has several
specialized units or department. Examples of large office include banking hall etc.
Advantages of large office:
1. There is specialized and team work.
2. There is enough space for office equipment; thereby promoting efficiency in the
office.
3. It is divided into functional units.
Disadvantages of large office:
1. There is limited experience.
2. There is no close relationship between employees (workers) and their
employers (boss).
3. There is no proper supervision of job.

Comparison between small and large office:

Small office Large office

1. The scope of business is small. The scope of business is large.
2. Few staff is employed. The staff strength is large i.e. many
staff are employed.
3. There is usually no pension scheme There is payment of pension and
or gratuity. gratuity after retirement.
4. Only on rare cases do employers Service training and study leave are
grant study leave with or without granted with or without pay.
pay.

ii) OFFICE BY ADMINISTRATIVE STRUCTURE:

Types of office by administrative structure can be described as the manner or way
in which offices are arranged in an organization. Types of office by administrative
structure can also be referred to as OFFICE LAYOUT.

Types of office by administrative structure:

There are basically two types of office by administrative structure; they are:
1. Open office. 2. Closed office.

1. Open office:This is a type of office arrangement whereby workers are placed

together in a centralized room which has an open floor space. It is referred to as
general office. Example: banking hall,staff room etc.
Advantages of open office:
1. It saves a lot of time and money.
2. It is easy to re-arrange the hall.
 3. It saves cost of equipping the organization.
Disadvantages of open office:
1. It causes interruption and disruption (i.e. disturbance) to other workers.
2. It disturbs free movement.
3. There is no privacy.

2. Closed office: This is a type of office arrangement whereby workers are

placed together in partitioned rooms which has divided walls. It is referred to as
private office. Example: principal’s office, bursar’s office.
Advantages of closed office:
1. There is privacy.
2. There is no disturbance, noise or discomfort.
3. It encourages efficient and effective performance of duties.
Disadvantages of closed office:
1. There is no effective supervision of work.
2. It prevents free and smooth flow of work.
3. It increases the cost of equipping the organization.

ASSIGNMENT 2:
i. 1. Define an office.
2. What name is the staff room in your school called?
3. What are the functions of an office?
4. State the two types of office: i) By size

ii) By Administrative structure

ii. Refer to: Macmillan Business studies Book 1, Page 9; Objective Questions 1- 6.

WEEK 3

Learning Objectives:
By the end of this lesson, students should be able to:
i. describe a clerical staff.
ii. state functions of a clerical staff.
iii. explain the qualities of a clerical staff.

TOPIC: OFFICE STAFF

An office staff is a person that keeps record of files, letters and does other office jobs
in an office. An office staff is also called a Clerical Staff or a Clerk.
Functions of a Clerical staff:
1. An office staff dispatches mails both in and out of an organization.
2. He or she is responsible for opening new files.
3. He or she distributes files or documents to different offices/departments.
4. He or she records the movement of every file.
Qualities of a Clerk:
The qualities of a clerk are grouped into two, that is:
a) Personal qualities b) Job qualities

Personal qualities of a Clerk:

1. He or she must be simply, neatly and smartly dressed to work.
2. He/she must have the ability to answer questions intelligently.
3. He/she must have a good listening attitude.
4. He/she must be polite.
5. He/she must possess a sound educational background with basic qualification.
6. He or she must be cheerful.
7. He or she must be honest.
8. He or she must be reliable.
9. He or she must be confident.
10. He/she must be punctual to work.

Job qualities of a Clerk:

1. He or she must have good communication skill.
2. He or she must have the minimum required education.
3. He or she must always keep the office tidy.
4. He or she must be tactful in carrying out the duties.
5. He or she must able to work without supervision.
6. He or she must be able to keep official secret.
7. He or she must be time conscious and ready work on schedule.
8. He or she must be productive and result oriented.

Confidentiality of office information:

Confidentiality means not disclosing official information to anyone. Another word for
Confidentiality is Secret.

ASSIGNMENT:
1. a) Who is a Clerk? b)List four qualities of a clerical staff.
2. Refer to: Macmillan Business studies Book 1, Page 13; Objective Questions 1- 5.

WEEK 4

Learning Objectives:
By the end of this lesson, students should be able to:
i. state the attributes and rewards of positive attitude to work.
ii. state the consequences of negative attitude to work.
iii. explain the concept of punctuality and regularity.
iv. state the attributes of punctuality and regularity.
v. mention sanctions for irregularity.
vi. meaning of devotion to duty?

TOPIC: RIGHT ATTITUDE TO WORK

MEANING:
Work can be defined as any activity that people engage themselves upon in order to
earn a living.

Attitude to work means having a certain state of mind towards a particular work done
by an individual in an organization. There are basically two differentattitude to work,
namely:
A. Positive attitude to work
B. Negative attitude to work

Positive attitude to work:

This means having a right or good state of mind concerning the work/job that one does.

Attributes of positive (right) attitude to work:

How do you know people with positive attitude to work?
People with positive (right) attitude to work will have the following characteristics:
1. Punctuality (i.e. being early to work). 2. Regularity (i.e. no absenteeism).
3. Consistency 4. Promptness
5. Hardwork 6. Commitment
7. Devotion 8. Diligence
9. Honesty 10. Reliability
11. Courteous and responsible 12. Interest
13. Conformity with the rules and regulations.

Reward of positive (right)attitude to work:

1. It brings promotion.
2. It brings high performance.
3. It brings success.
4. It brings respect.
5. It brings happiness.
6. It enhances good relationship with the co-workers.

Negative attitude to work:

This means having a wrong or bad state of mind towards the work/job that one does.

Consequences of negative attitude to work:

A negative (wrong) attitude to work is harmful because it causes/lead to;
1. Stress 2. Anxiety 3. Depression 4. Failure
5. Ulcer 6.Unemployment 7. Demotion etc.

Punctuality and irregularity:

Punctuality can be defined as quality of being prompt, precise, early or exact. It is the
quality of doing things at the arranged, agreed or correct time. Punctuality is the
opposite of laziness.

Regularity can be defined as the quality of doing the same thing often (consistently)
over a period of time without being absent.

Attributes/characteristics/features of punctuality and regularity:

1. Commitment: This is the willingness to work hard and give your energy and time to a
job i.e. to speak of action.
2. Interest: This is an act of giving great attention to something which you want to be
done by all means in order to achieve success.
3. Consistency: This is the quality of always behaving in the same way i.e. maintaining
standard no matter the obstacles.
4. Promptness: This is the habit of doing things without delay but as schedule.
5. Self-motivation.
6. Accountability.

Benefits/rewards for punctuality and regularity:

Reward is the result or consequence of doing a particular work.
1. Success. 2. Promotion. 3. Awards. 4.High performance
5. A better team player 6. Increment in wages and salaries.

Irregularity and punishment (sanctions):

Irregularity: This is a situation or practice whereby employees sometimes absent
him/her from worki.e. he/she is not steady.

Sanction: This is the punishment or discipline given to an irregular employee (worker)

i.e. those that always come late to work.

Sanctions for irregularity:

They include:
1. Giving query to the workers.
2. Deduction from the workers’ salaries.
3. Suspension from work/duty.
4. Dismissal from work without notice and pay.

How punctuality and regularity contribute to high performance:

1. Punctuality and regularity contribute to high performance when there is no delay or
stoppage.
2. When there is no piling up of works i.e. low production, which could slow the growth
of the organization.

Devotion to duty:
Meaning:
This is the state in which a worker gives great love, care, time, focus, effort, and support
entirely for, and or to the work he/she does in an organization. Responsible workers
show a high degree of seriousness in their work place to proof that they are devoted to
their duty.

Effects of devotion to duty (advantages/benefits of devotion to duty):

1. It leads to increase in productivity.
2. It leads to increase in profit.
3. It leads to economic development.
4. It prevents wastage of resources.
5. It enables workers to produce standard and reliable product.
6. It improves the welfare of the workers.

ASSIGNMENT:
1. Define devotion to duty.
2. Mention four attributes of a person with the right attitude to work.
3. Name three consequences of a negative attitude to work.
4. Mention three consequences of irregularity.

WEEK 5

Learning Objectives:
By the end of this lesson, students should be able to:
i. define department.
ii. state types of department in an organization.
iii. Identify the functions of each of department.

TOPIC: DEPARTMENT
What is a department?
A department can be defined as a unit or section in an organization.
Types of department:
1. Administrative department
2. Accounts department
3. Purchasing department
4. Sales department
5. Personnel department
6. Production department
7.Transport department
8. Planning department
9. Marketing department

Administrative department:This is the department that co-ordinates and directs the

affairs of all other departments in an organization. It is headed by the Administrative
Manager.
Functions of Administrative department
1. It employs administrative staff.
2. It organizes meeting.
3. It supervises the activities of all other department.
4. It promotes staff welfare.
5. It formulates policies.
Accounts department:This is the department that keeps record and account of all the
financial transactions in an organization. It is the “backbone or nerve center” of an
organization. It is headed by the Chief Accountant; in schools, he/she is called Bursar.
Functions of Accounts department:
1. It keeps and updates financial records.
2. It prepares and pays workers’ wages and salaries.
3. It prepares the annual accounts.
4. It takes care of cash and bank accounts.
5. It settles bills and controls the budget.
6. It offers financial advice.

Purchasing department: This department deals with buying of raw materials and items
needed in an organization. It is headed by a Purchasing manager.
Functions of Purchasing department:
1. It buys raw material and equipment needed.
2. It ensures that suppliers submit quotations.
3. It checks invoice and delivery note.

Sales department: This is the department that performs the selling activities of the
organization’s products. It is headed by the Sales Manager.
Functions of Sales department:
1. It sells the organization’s product.
2. It ensures that good gets to final consumer.
3. It provides exhibition and sales promotion of goods.

Personnel department: This is the department that handles the affairs of all the staff in
the organization. It is headed by the Personnel Manager.

Functions of personnel department:

1. It recruits workers.
2. It trains, promotes, and demotes workers.
3. It transfers, dismisses or retrenches workers.
4. It disciplines and appraises workers.
5. It settles disputes between workers.

Production department: This is the department that is in charge of transforming

raw materials into finished product. It is headed by Production Manager.
Functions of Production department:
1. It uses raw materials for production.
2. It ensures that goods are produced in their right quality and quantity.
3. It produces goods according to specification.
 Transport department: This is the department that controls the movement of all
the company vehicle from one place to another.it is headed by the Transport
Manager.
Functions of Transport department
1. It buys and hires vehicles of the organization.
2. It takes charge of all transport matter.
3. It delivers goods to consumers.
4. It repairs and maintains vehicles.

Planning department:This is the department that generates new ideas for the
improvement of the organization. It is headed by the Planning Manager.
Functions of planning department:
1. It initiates change for a better production.
2. It identifies new areas of investment.

Marketing department: This is a department that markets company’s products

and it is headed by the MARKETING MANAGER.
Functions of planning department:
1. Carrying out market surveys to know what the customers need.
2. It designs and packages news product with the research and development
department.
3. It increases sales value.

ASSIGNMENT:
1. What is Department?
2. List four important departments in an organization.
3. Refer to: Macmillan Business Studies book 1, page 21, 5.13 Objective questions
1-4.

WEEK 6
Learning Objectives:
By the end of this lesson, students should be able to:
i. define Commerce.
ii. List the importance of Commerce.
iii. List the activities which aid commerce.

TOPIC: INTRODUCTION TO COMMERCE

Definition of Commerce:
Commerce is defined as the commercial activities which deal with the distribution and
exchange of goods and services.Commercial activities can be described as all the
actsof buying and selling which are performed in order to earn a living. Examples of
commercial activities include: trading, transportation, warehousing,insurance,
advertising, banking and finance.
Importance of commerce:
1. Commerce facilitates the exchange of goods and services.
2. It offers employment opportunities.
3. It helps to improve the standard of living.
4. It enhances development of market.
5. It enhances the rapid transfer of information.
6. It helps to break barriers between producers and consumers.

Activities which aid commerce include:

1. Transportation
2. Warehousing
3. Advertising
4. Insurance
5. Banking
6. Communication etc.

ASSIGNMENT:
1. What is Commerce?
2. List two importance of commerce.
3. List five activities that aid commerce.
4. Mention four commercial activities carried in your area.

Week 7
Learning Objectives:
By the end of this lesson, students should be able to:
i. classify Commerce.
ii. state types of Trade.
iii. differentiate between home and foreign trade.
iv. explain import and export trade.
v. list products involved in home and foreign trade..

TOPIC: DIVISION OF COMMERCE

Commerce is broadly divided into two namely;
1.) Trade
2.)Aids to trade
 Diagram showing the division of commerce:

Commerce

Trade Aids to Trade

Home trade Foreign trade

Insurance

Wholesale Retail Import Export Entreport warehousing

Tourism
Transportation
Communication
Advertising
Banking and
finance

TRADE
MEANING:
Trade can be defined as a business activity which deals with the buying and selling of
goods and services in order to make profit. Trade is the major branch of commerce.
Types of trade:
There are two types of trade:
a.) Home trade b.) Foreign trade

A.) HOME TRADE: This is the act of buying and selling of goods and services among
people living within the same geographical area i.e. within a country. Home trade is also
known as Domestic or Internal trade. Examples of home trade are: trade from Aba to
Lagos, Kano to Oyo etc.
Types of home trade:
There are two types of home trade. They are:
(i) Wholesale trade (ii) Retail trade
Wholesale trade: This is the act of buying goods in large quantity from producersand
selling in small quantity to retailers. Traders who buy goodsdirectly from the producers
in large quantity are called Wholesalers.
A wholesaler serves as the intermediary between the Producers and the Retailers.

Retail trade:This is the act of buying goods in small quantity from the wholesalers and
selling in units to the final consumers. Traders who buy goodsdirectly from the
wholesalersin small quantityare called Retailers. The Retailer is the final link between
the Producers and the Consumer.
NOTE:
The end users of a product i.e. people who buy goods in unit or bits directly from the
retailers for utilization (use)/ consumption are called Consumers.
There are two categories of retail trade in Nigeria. They are: Large retailers and Small
retailers.
Large retailers are traders that buy variety of products in unlimited quantities from
several producers to meet the needs of the customers. For example:
Shoprite,Justritestore, Park and Shops etc.
Small retailers aretraders that buy variety of products in limited quantities. For
example: kiosk owners, hawkers etc.

B.) FOREIGN TRADE: This is the act of buying and selling of goods and services
beyond the geographical boundaries of a country i.e. between two or more countries.
Foreign trade is also known as International or External trade.
Examples of foreign trade are: trade between Nigeria and Japan, China and Italy,
Holland and USA, etc.

Types of Foreign trade:

There are two types of Foreign trade:
i) Import trade (ii) Export trade (iii) Entrepot trade
Import trade: This is the act of buying goods from other countries. For instance, a
trader can buy electronics, cars, pharmaceuticals and so on from Japan, Britain,
Germany, China,India etc. in order to sell them in Nigeria.

Export trade: This is the act of selling goods to other countries. For instance, a trader
in Nigeria can sellscocoa , palm oil, rubber, crude oil etc. to foreign countries such as
America, Britain, Cuba, Netherland, UK, France, Germany, Spain, Italy, USA, Japan
etc.

ENTREPOT TRADE : This is the act of buying goods from other countries and reselling
the same goods to another country.
Entrepot trade is also referred to as Re-export trade (i.e. importing for re-exporting).
For example; a trader in Nigeria that buys cars from Germany into Nigeria and resells
them in Ghana.

Diagram showing the division of trade

Trade

Home trade Foreign trade

Wholesale Retail Import Export Entrepot

Difference between home and foreign trade:

HOME TRADE: FOREIGN TRADE:
1.There is no language trade. 1. There is language barrier in foreign
Trade.
2. Home trade involves the use of one 2. Foreign trade involves the use of
currency. different currencies.
3. Goods are moved freely from one place 3. Foreign trade is subject to restriction as
to another within the country. some goods are banned from being
 imported into some countries.
4. Transport cost is lower in home trade. 4. Transport cost is higher in foreign trade.
5. Home trade is carried out within a 5. Foreign trade is carried out between two
country. or more countries.

ASSIGNMENT
1. Define Trade.
2. Explain the two types of Trade.
3. List five products involves in Home trade.
4. List five products and five countries involved in Foreign trade.
5. Refer to: Macmillan Business book 1. Page 27, Exercise 7.6, Objective questions
no 1-4.

AIDS TO TRADE
Meaning:
Aids to trade can be described as those commercial activities which facilitates
the buying and selling of goods and services. Aids to trade are also called
Auxiliaries to trade.
1. BANKING AND FINANCE:This is the system of accepting and safe keeping of
money and other valuables for people. It is also the granting of credits in the form
of loans and overdrafts to people in order to finance their business. A financial
institution which is set up purposely for the safekeeping of money and other
valuables is known as a BANK.

2. ADVERTISING:This is the process of creating awareness about the availability

of a product to the member of the public.

3. WAREHOUSING:This is the system of storing goods produced ahead of

demand, until the time they are needed.

4. INSURANCE:This is the provision made for the protection of life and property
against unexpected loss or risk. The amount paid on monthly basis to the
insurance company by the insured is called PREMIUM e.g. life assurance,
marine, fire, burglary insurance etc.

5. COMMUNICATION: This is the system of sending and receiving information from

one person to another.

6. TRANSPORTATION:This is the system of moving goods and people from one

place to another either by land, sea, air, or pipeline.

7. TOURISM:This is the system of providing services such as transport,

entertainment, and accommodation for people who travel to different places for
holiday and pleasure.
 WEEK 9
Learning Objectives:
By the end of this lesson, students should be able to:
i. Define Production.
ii. Explain types of Production.
iii. State the effects of Production on environment and society.

TOPIC: PRODUCTION
Production is defined as the process of transforming raw materials into finished or
semi-finished goods, distribution and provision of goods and services for the satisfaction
of human wants.
In other words, Production is the creation of utility.
What is raw material?
Raw material is referred to as the item which is in its natural state i.e. unprocessed
goods.
What is human want?
Human want is the effective desire for a particular thing which expresses itself in the
effort necessary to obtain it.
Human want can be divided into two, namely;
1. Material wants: They are classified as goods (tangible goods); they can be seen,
touched and moved e.g. cars, books, rice, yam, table, bags, shoes etc
2. Non-material or immaterial wants: They are classified as services (intangible
goods); they cannot be seen and touched e.g. hairdressing service, transport service,
banking service, medical service, electrical service, mechanical service, legal service
etc.

Types/stages of production
There are three types/stages of production, namely;
a. Primary production (First stage).
b. Secondary production (Second stage).
c. Tertiary production (Third stage).

Primary production: This can be defined as the first stage of production which deals
with the extraction of raw materials from their natural source. Primary production
involves those in the extraction industry e.g. hunting, farming, fishing, mining etc.
Secondary production: This can be defined as the second stage of production which
deals with the manufacturing and construction of raw materials into finished or
semi-finished goods. Secondary production involves those in the manufacturing and
construction industry e.g. Food processing, textile making, construction of bridges,
roads and machines etc.
Tertiary production: This can be defined as the third stage of production which deals
with the commercial activities that make it possible for goods to reach the final
consumer. Tertiary productioninvolves those both in professional and commercial
services e.g. trade and aids to trade.

Effects of production on the environment and society

Environment is the place, area or vicinity in which people live and work. It includes the
physical and natural condition which affects the area such as air, water, land etc.
However, the effects of production on an environment will either be positive or negative.
The positive effects of production on an environment are:
1. It provides employment opportunity to the people.
2. It helps the people to acquire special skills.
3. It helps to develop the society.
4. It improves the standard of living of the people.
5. It makes goods and services available for human satisfaction.

What is environmental pollution?

Environmental pollution is the process of damaging the air, water and land with
chemicals and other dangerous substances which have negative impact on the life of
man.
The negative effects of production on an environment are:
1. It brings about environmental pollution e.g. smoke.
2. It pollutes the land due to improper disposal of waste products e.g. pure water
sachets, containers etc.
3. Oil spillage destroys the land on which people farm thereby, causing hunger and
starvation.
4. Heavy vehicles with heavy loads damage the roads.
5. Emission (i.e. sending out) of gaseous forms like carbon dioxide, germicide,
pesticides could lead to serious health problems or death if breathed in.

ASSIGNMENT:
1. What is Production?
2. What are the stages of Production?
3. List five companies in the manufacturing industry and the names of the products
they produce.
4. List five companies in the construction industry
5. Mention two examples each of tangible and intangible goods.
6. Define environmental pollution.
7. List two types of pollution from the extractive industry and from manufacturing
industry.
8. Refer to: Macmillan Business book 1. Page 33, Exercise 8.7, Objective questions
no 1-5.