1. What is a business?

2. … is any organisation that makes
goods or provides services.

3. Needs and wants
• YOUR NEEDS –>goods or services essential
for living. (things you think are necessary for
living).
• YOUR WANTS -> goods or services that
people would like to have, but are not
essential for living. (things you would like to
be able to buy and own).

4. • Goods and services are tangible and
intangible goods that are produced and
purchased in order to fulfill the needs and
desires of consumers.

5. GOODS
• Goods are simply any physical or tangible products
that can be seen and touched. Some goods are
quickly consumed and must be replaced by like or
similar products on a regular basis.
• Food is one example of goods that are quickly
consumed and must be acquired repeatedly. Other
forms of goods are more long-term in nature, and
may last for years or even decades.
Furniture, cutlery, and houses are examples of
durable goods that are intended to satisfy consumers
for extended periods of time.

6. SERVICES
Services are intangible support that is provided to
the consumer in some manner.
Example:
A physician provides healthcare support or
services. Telephone companies provide
communications services such as local calling
ability, long distance calling, and other features
that enhance the electronic communication
process. Banks provide a range of financial services
to customers, ranging from basic and checking
accounts to investment opportunities.

7. Work in pairs -
Revision
What is a business? Definition
Needs or Wants ?
___________ -> goods or services that people
would like to have
__________ -> goods or services essential for
living.
Services and Goods. List some characteristics and
provide examples.

8. Factors of production
• Factors of production are those resources
needed to produce goods or services.
• These fators are limited in supply
Factors of production
• Land
• Labour
• Capital
• Enterprise

11. • Land -> covers all the natural resources provided by
nature and includes fields and forests, oil, gas, metals
and other mineral resources.
• Labour -> efforts of people needed to make
products.
• Capital -> the finance, the machinery and equipment
needed for the manufacture of goods.
• Enterprise -> the skill and risk taking ability of the
person who brings the other resources together to
produce a good or service. Eg. The owner of a
business is called entrepreneurs.

12. Levels of business activity -> There are
millions of businesses around us. Business
can be categorised in three broad
categories or stages.

14. Levels of business activity -> There are millions of businesses around us. Business can
be categorised in three broad categories or stages.
Primary Sector
All those businesses which are related with
extraction of raw material from Mother
Nature such as mining, fishing, farming, and
logging are known as Primary Sector
businesses.

15. Secondary Sector
All businesses which manufacture and process
the raw materials which can be used by the
end consumers are known as Secondary
Sector businesses. These include building,
construction, compute assembly, shoes
factories, textile factories etc.

16. Tertiary Sector
Whereas all the businesses which provide
services and assist both the primary and
secondary sector businesses can be classified
as Tertiary sector businesses. These include
transportation, insurance, hospitals,
educational institutes, showrooms etc.

17. Example -> British Petroleum
A business may exist in all the three sectors
also. For example. British Petroleum has its
own Oil wells and it extracts raw oil, this is
_____________________, this oil is converted
into petroleum and other by products. This is
_____________________. After processing
the oil into useable product BP sells it to end
consumers through its network of Petrol
pumps. This comes under
_____________________.