Page 10 - Business Studies

Business Studies for Secondary Schools

Activity 1.2 Indirect production: Indirect production
refers to producing goods and services
for selling. For example, a tailor designs
Visit a nearby workshop, mill, or
small-scale production site in your clothes, or a chef cooks meals for sale to
locality. Pay attention to how products earn money.
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are made, from the materials they start Note that: A person can create goods and
with (inputs) to the finished products services for personal consumption and selling
(outputs). purposes, similar to Janerosa’s scenario.

(a) Take note of the tools or machines Exercise 1.1
they use and how people work
together to make the process smooth. 1. Recall Janerosa’s scenario in Activity

(b) Observe if the production activities 1.1 and identify the type of production
ensure the protection of the she was doing. Provide reasons for
environment. the answer.
(c) Write a report to explain: 2. Juma is a farmer who grows and sells
(i) The type of production process vegetables to various community
used (for example, manual or members. As an expert in production,
mechanical). briefly explain the type of production
Juma conducts and provide reasons
(ii) The role of technology in the for the answer.
process. 3. Assume you are invited to discuss
(iii) Suggestions on how the process production with your community as
could be improved. a guest speaker. Provide a summary
of what you will talk about.
Types of production

There are two types of production: direct Importance of production
and indirect production. These types are Production is the foundation of any economy.
explained as follows: It goes beyond creating goods and services;
it includes effectively meeting peoples’ needs
Direct production: Direct production refers and wants. The following are the importance
to creating goods and services for personal of production:
consumption. Under this type of production,
individuals produce goods and services for Creation of goods and services to satisfy
consumption. For example, a farmer can human needs and wants: Production removes
grow vegetables, or a carpenter can make the distance gaps between producers and
a bed for personal use. consumers by creating goods and services
and ensuring they reach the final consumers.

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Business Studies Form 2.indd 4