Page 8 - Bisiness Studies
P. 8
Business Studies for Secondary Schools
Business processes
Business activities involve the processes
that an organisation engages in, to achieve
its goals. These processes are production,
distribution, exchange and consumption.
FOR ONLINE READING ONLY
They are explained as follows:
Production
This is a process of transforming raw
materials into fi nished products to satisfy
human needs and wants. For example, a
tailor transforms a fabric into a type of
a cloth such as a trouser, shirt, dress or
curtains.
(a) Small retail shop
Distribution
This is a process of moving goods and
services from where they are produced to
where they are needed for consumption.
For example, the transportation of
manufactured sugar from Mtibwa
Sugar Company in Morogoro Region
to wholesalers, retailers or consumers
located in various regions of Tanzania or
to other countries.
(b) A fruits vendor
Exchange
This involves buying and selling of goods
and services between two or more parties.
It involves the use of several means of
payments, including money. Exchange
enables consumers to consume items they
do not produce and producers to produce
what they do not consume. For example,
a tailor can produce clothes for selling
(c) Carpenter making furniture and not for his or her own consumption
while consuming sugar produced by a
Fig ure 1.1: Business activities sugar manufacturing company.
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