Page 11 - Business Studies

Business Studies for Secondary Schools

Job creation: The production of goods (a) Identify at least four production
and services in various sectors demands activities taking place in your
a workforce, which leads to job creation. community;
For example, producing maize flour (b) Describe the importance of each
will create jobs for farmers, machinery production activity; and
operators, food processors, warehouse
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workers, transporters, and traders. (c) Create a summary from your
observations.
Improves the living standard: The production
of essential goods and services such as
clothes, housing, healthcare, and food directly Factors of production
improves people’s standard of living. For Resources or inputs used to produce
example, producing affordable housing can goods and services are known as factors
reduce people’s cost of living. of production. Specifically, for production
Increases government revenue: Businesses to occur, inputs or resources (land, labour,
involved in various production activities pay capital and entrepreneurship) should be
available. Among these, land, labour,
taxes to the government. The tax revenue and capital are the fundamental factors
funds public services such as healthcare, of production since no production can
education, and infrastructure development occur if any of these is missing. On the
in the community. other hand, entrepreneurship organises all

Boost economic development: Job creation other factors of production. These types
and increased tax revenues boost the country’s of factors of production are explained as
economy. When more people have jobs, follows:
they earn income, which they spend on Land
goods and services, driving demand and Land refers to all natural resources made
supporting businesses. As businesses grow, available to humankind by nature. It
they pay more taxes, as do the individuals. includes many things underneath, on, and
These tax revenues fund public services like above the ground. Examples of resources
education, healthcare, and infrastructure, obtained on land include water, soil,
further stimulating economic growth. minerals, and trees. Land is considered
a fundamental factor of production
Activity 1.3 because all production activities, such as
transportation, trade, and manufacturing,
Walk around your community and look take place on it.
for businesses or individuals engaged It is important to note that land is usually
in production activities or search from referred to as a gift of nature, which
online sources for information about means created by God, but in practice, it
production activities, then: is not necessarily free. A payment must

5 Student’s Book Form Two

03/10/2024 16:07
Business Studies Form 2.indd 5 03/10/2024 16:07
Business Studies Form 2.indd 5