What Is Business Activity? PDF

# What Is Business Activity? ## Business Activity - Organizations that produce goods and services. - Goods are physical product such as a mobile phone, a packet of crisps, or a pair of shoes. - Services are non-physical products such as banking, car washing, and waste disposal. - Businesses produc...

# What Is Business Activity? ## Business Activity - Organizations that produce goods and services. - Goods are physical product such as a mobile phone, a packet of crisps, or a pair of shoes. - Services are non-physical products such as banking, car washing, and waste disposal. - Businesses produce an output, a good or service. - Goods and services are consumed - Resources are used such as spare parts, oil, tools, equipment, and electricity - Businesses carry out a number of functions including: production, marketing, human resources, and financial control. - Businesses are affected by external factors such as government laws, changes in consumer tastes, and the actions of competitors. - Businesses aim to make a profit. ## Business Stakeholders - Any individual or group that has an interest in the operation of a business is called a stakeholder. - Business Stakeholders: - Owners - Government - Customers - Local community - Employees - Financiers - Suppliers - Managers ## Goods and Services - Goods and services are sold to ordinary people (consumers). - Producer goods and services are produced by one business for another. ## Satisfying Needs and Wants - Needs are requirements for human survival such as water, food, warmth, shelter, and clothing. - Wants are people's desires for goods and services. ### The Purpose of Business Activity - Businesses exist to provide goods and services. - Businesses are organized in different ways: - **Private Enterprise**: Owned privately by individuals or groups of individuals for the objective to make a profit. - **Social Enterprise**: Some organisations in the private sector are non-profit making, such as charities, pressure groups, clubs and societies. - **Public Enterprise**: Owned or controlled by central or local government for the purpose of providing goods and services. ### Subject Vocabulary - **Stakeholder**: An individual or group with an interest in the operation of a business. - **Entrepreneur**: A person who takes risks and sets up businesses; an individual who organizes the factors of production and risks their own money in business venture. - **Infinite**: Without limits in space or time - **Finite**: Having an end or a limit. - **Scarce**: Resources with limited availability - **Private Sector**: Business organisations owned by individuals or groups of individuals. - **Public Sector**: Business organisations owned by central or local government. - **Consumer Goods**: Goods and services sold to ordinary people (consumers) rather than businesses. - **Producer Goods**: Goods and services produced by one business for another. - **Needs**: Basic requirements for survival. - **Wants**: People's desires for goods and services.