Business Studies Chapter 1 - Understanding Business Activity PDF
Document Details
Uploaded by Deleted User
Tags
Summary
This Business Studies PPT covers Chapter 1, Understanding Business Activity. Topics include objectives, factors of production, opportunity cost, and added value. The presentation is designed for a secondary school class.
Full Transcript
Business Studies Chapter-1 Understanding the Business Activity Objectives It provides us(customers) with services and goods that meet our needs and wants. FACTORS OF PRODUCTION Land Labour Capital Enterprise OPPORTUNITY COST The benefit of the next most desired option...
Business Studies Chapter-1 Understanding the Business Activity Objectives It provides us(customers) with services and goods that meet our needs and wants. FACTORS OF PRODUCTION Land Labour Capital Enterprise OPPORTUNITY COST The benefit of the next most desired option which is given up. Example:- Someone gives up going to see a movie to study for a test in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it. What do you understand by Adding Value in business? Added Value Added value means the difference between the cost of purchasing raw materials and the price the finished goods are sold for. Adding Value Example: Imagine a celebrity chef preparing a meal at his luxury restaurant. Once the cooking is complete, the meal is being served and sold for a high price, substantially more than the cost of buying the ingredients. Value has been added. Thank You!!!
