Background of Business PDF

01. Background of Business The following facts will be discussed in this chapter: 1.1. Business concept about business ▪ Business concept ▪ Business objectives ▪ Consumer needs and wants ▪ Manufacturing businesses ▪ Factors of production 1.2...

01. Background of Business The following facts will be discussed in this chapter: 1.1. Business concept about business ▪ Business concept ▪ Business objectives ▪ Consumer needs and wants ▪ Manufacturing businesses ▪ Factors of production 1.2 Stakeholders of businesses ▪ Stakeholders ▪ Objectives of stakeholders ▪ Business Concept During ancient times people had only a few essentials and they produced all their needs and wants by themselves. When the needs and wants were diversified, it was difficult to produce all their needs and wants by themselves. As a remedy to this problem, people started to produce large quantity of goods that they could produce the best, with the skills and resources they had. Therefore, an excess of goods was created. Then people exchanged their excess goods with others to obtain other goods and services they wanted. This system of exchanging goods was known as the “Barter System”. A business is an economic activity which manufactures or provides different goods and services in order to fulfill human needs. Goods Goods are tangible products that consumers buy to meet their needs. Ex: pen, pencil, apple, rice, bread…etc. Services A service is an action that a person does for someone else to satisfy his/her needs. Ex: haircut, education, vehicle repair,