Download Topic 1 - businessib

Topic 1
The nature of
business activity
What is a business
A business is any organisation that uses resources to meet the needs of
customers by providing a product or service that the customers demand.
Business activity at all stages of production involves adding value
"Our one rupee coin is in fact worth 35
rupees, because we make five to seven
blades out of them,"
Adding value is ‘adapting’ the
product / service so people are
willing to pay more money
For the full article
http://news.bbc.co.uk/2/hi/6766563.stm
Value Added
Value
Added
Selling Price
-
Cost of
materials/
Components
=
Key terms
Consumer services
non-tangible
services sold to the
public
Consumer goods
Tangible goods
sold to the public
Capital goods
Tangible goods used
by industry to aid in
the production of
other goods /
services
Four factors of production
Labour
Land
Factors of Production
Capital
Enterprise
Land
All of the natural resources provided by nature
Labour
All people’s efforts to make products
Capital
All finance, machinery & equipment in manufacturing products
Enterprise
All people that have skills & have risk-taking ability  factors of production  produce good
or service
Levels of business activity
Tertiary
Secondary
Primary
Levels of business activity
Types of Countries
Developed
Countries
Developing
Countries
Types of Countries