Page 10 - Bisiness Studies
P. 10
Business Studies for Secondary Schools
Terminologies used in Business are goods or services an individual must
Studies have to survive. Food, shelter, water, and
clothes are essential needs for a human
Business Studies involve understanding being to be able to live.
the main business processes, which
include production, distribution, exchange Human needs and wants are unlimited
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and consumption. Other important in number. They have a tendency of
terminologies for understanding Business multiplying in such a way that when an
Studies include needs and wants, individual satisfi es one, another one tends
services, goods, resources, scarcity, to arise. For example, a Form One student
and opportunity cost. These terms are demands a school uniform, a school bag,
explained as follows: and textbooks from the family budget.
The same student may also need food or
Needs and wants water to survive at school. At the same
time, the student may require services of
Activity 1.2 teachers, and sometimes of sports' coach
in the physical education session. This
Create two lists of goods and services. means that wants increase continuously
The fi rst list should comprise goods as one want is satisfi ed the other one
and services that you think are arises.
necessary for living and the second
list should comprise goods and Services
services that you desire to have. Services are intangible outcomes of
human efforts that can satisfy human
People demand goods and services to needs and wants. They command prices
satisfy their needs and wants. In Activity in exchange, and their purchase does
1.2 the items listed as necessary for not result in the ownership of anything
survival are referred to as needs, and physical. For example, one can only
those ones that a person desires to have seek advice from the doctor, but cannot
are referred to as wants. purchase him. Thus, a service is an act
or a performance offered by one party to
Wants on the other hand, can be goods another. Services may be banking, online
or services an individual desires even payments, education, health care, garden
when they are not essential. Motorcycles, designing, car washing, recreation,
televisions, and jewellery are wants communication, transportation, tourism
because they are things that one can live and restaurants. Figure 1.2 shows health
without and still survive. Needs however, care services.
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