BUSINESS STUDIES ( Chapter | - Business Activity ) ‘The Purpone of Basinens Actuty + People Rave urlinited wean. + The our factors of production sre in fnted supply + Searvity rat frm linted resources and united want + Choe ie necessary —> opportunity cost + Sheciaeation improves the offciont ute of rescues. + busireases » They combine factors of preducticn to make products [goods and services] whith sah poorle's wnt, = Busines activin. al combines: seare factors of production to produce goods and services 1) produces qoodd and servioes whith are needed to satiy the pepulien’s needs and wera 1} emplogo poople ae workarn end pays thom wages: to alow them fo consume precheia made by ahera + need - It it 2 good or service essential for living. Examples: water, food, shelter, eothes and money. + want Ita yond or service hich people would ike to hav, but which tnt een oe bung. Decple's wants are unkmited The Encore Prblem + There ave unlimited wanta but ited resources to produse the goods and servives fo satisfy those wants + Ih the real cause of the scarcity of goods and werviees because there are not envurh fastens of production to eneke all of the nocd ard gervines that the poruatione needa ancl usar + soartty “Fa the lok of eaficitprotcls to fll the total wants af the pepedatin, + faers of rodetian «The regoureas needed to produse goods cr serves. There ae fur in fll and bred in supply. Fastors of Preduston + land It cuers ol the natural eacureet indeed, Frets, of, gat and eter mineral resourtes. + labour It isthe people uho make the pretuct. + capt -t the finante needed fo purchase machinery eugene for the marufactre of goede + enforprie- I it the sil ofthe pearle who bring the other resourees to produce goods af service. Limited Resourees: The Nood to Choose + Ir any one ceuntry, fatort of production ae ete in supply. Therefore, tere it an econortie problem of starcty + Bossune rescuroee are ted, wehave to make choices. We have to devided which wants we wil satiiy and done which we wil not, Al choivesinelve gir sere up lofperturdty cst. + opportunity cost +I isthe rext bout alternative gun up fo gorge or achieve smh ae. ‘Spovzalsatior The Best Use of Lined Renources + speciaation-IH occurs uben pecple and busineoues concenirale on what fey ara best al = lWinimpartar ta uae rsouroes in the most efctre ways posible + Machinery and fechnalogy are row wide used + Larger fri offen enploy workers that apeuine in one aki and most busineases specie on ene pred,Division of Labour + lin uber the preducton process ia apt up two difrent taka and each worker performs ore cf these tak. a frm of speciasation = Advantages: a) Workers are trained in one task and specisiive in thie which increases efficieney and output 1) Lose tina ia wetted maving fom one weekench to anaer. = Diavertagen: 2) Ulerkans ean benome bered deing just ane job and efvienoy might fal 1) If ene worker is sheer and na-one alse ean do the job, praduetan might be stopped. Added Ustus + Ih ia the diference botueon the soling prise of a produ! and the eost of bought in materia srd ecriponenis: + Ih isthe increased wart that a butines areas for a praduot. + If valu ie not ddd do the materia and womponents that a businoss buye, oer costs carnct tne ped for ard no profit wilbe mado + Added velue is important because 8) Sales revenue in greater than the cost of maferiake bought in by the business. 1) lean poy other coats such ae labour costs, management expenses ard costs sueh au erhertising and poe ] Thay be able to mske a prof if these other cose fll lees than the sdded valu = Weean imeroase added vale by. al Improving fhe quality 8 Conuenionge and speed 2) Packaging dd) Brand name 6) Coed designe 41 Unique scling paint/preposition (scmething that makze the produet worth pay extra fr) 6] Iheressing sling pride but Keeping the okt of sterile the sane fh) Reducing the east of motors but keeping the priae the same.