Understanding Business 1.1 - Business Activity Business Management (National 5) N5 Bus Man – 1.1:...
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Transcript of Understanding Business 1.1 - Business Activity Business Management (National 5) N5 Bus Man – 1.1:...
Business Management (National 5)
N5 Bus Man – 1.1: Business Types © BEST Ltd ‹#› Licensed to: Turnbull High School
BUSINESSES are organisations that are formed to provide:
◦ GOODS◦ SERVICES
GOODS and SERVICES can be:
◦ DURABLE◦ NON DURABLE◦ CAPITAL◦ CONSUMER
N5 Bus Man – 1.1: Business Types © BEST Ltd ‹#› Licensed to: Turnbull High School
The process of businesses using the factors of production to produce goods and services to satisfy the needs and wants of consumers is known as the BUSINESS CYCLE.
This process is a cycle because it goes on over and over again because consumers UNLIMITED wants constantly create new things that businesses can produce.
The cycle means that if a business is to succeed it MUST pay particular attention to minimising its externalities and satisfying consumers unlimited wants to stop the business failing.
Businesses identify consumers NEEDS and WANTS and decide to make
GOODS and SERVICES to satisfy
them.
Businesses employ the FACTORS OF PRODUCTION to
PRODUCE the desired goods and
services and increase WEALTH.
Wages from employment allow
consumers to CONSUME goods
and services.
Consumers have NEEDS and (NEW and UNLIMITED)
WANTS.
THE BUSINESS CYCLE
N5 Bus Man – 1.1: Business Types © BEST Ltd ‹#› Licensed to: Sample High School