Business Studies Semester 1
ASHVINNI RAGUNATHAN -‐ BUSINESS STUDY GUIDE 1
Section 1.1
Factors of Production • CELL o Capital -‐ To make their goods or to provide their services, firms need to invest money in machinery, buildings, vehicles and other major resources o Entrepreneurs – The entrepreneur owns the business and is prepared to take the chance that his or her product will be a success o Labor – Businesses need to employ people to make and market their products o Land – All businesses need land to create their products and its needed for buildings, offices, factories Sectors of Business (Primary, Secondary, Tertiary) • Primary, Secondary, and Tertiary sectors of a business is the type of industry known to be the stages. o Primary – collecting and extracting raw materials o Secondary – processing raw materials into manufactured goods o Tertiary – providing personal, commercial, and financial services. § Services include transport, finance, insurance, training, and advertising.
Satisfying Needs and Wants, Adding Value, Opportunity Cost • Needs are basic things that people need to survive o Food, water, shelter, clothes, warmth • Wants are things that we want or would like to have but are not
Section 1.1
Factors of Production • CELL o Capital -‐ To make their goods or to provide their services, firms need to invest money in machinery, buildings, vehicles and other major resources o Entrepreneurs – The entrepreneur owns the business and is prepared to take the chance that his or her product will be a success o Labor – Businesses need to employ people to make and market their products o Land – All businesses need land to create their products and its needed for buildings, offices, factories Sectors of Business (Primary, Secondary, Tertiary) • Primary, Secondary, and Tertiary sectors of a business is the type of industry known to be the stages. o Primary – collecting and extracting raw materials o Secondary – processing raw materials into manufactured goods o Tertiary – providing personal, commercial, and financial services. § Services include transport, finance, insurance, training, and advertising.
Satisfying Needs and Wants, Adding Value, Opportunity Cost • Needs are basic things that people need to survive o Food, water, shelter, clothes, warmth • Wants are things that we want or would like to have but are not