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Section 1: Under standing business activity., : :, Enterprise, business…
Section 1: Under standing business activity.
4.Type of business organisation
partner ship
A partner ship is a form of business in which two or more people agree to jointly own business.
sole trader
A sole trader is a business own and controlled by one person .
Business activity
Key term
Goods: are items that are usually tangible, such as pens, books, salt, apples and hats.
4 factor of production:Land, Labour,Capital and enterprise.
Services:are activities provided by other people, who include doctors, law and care workers, dentists, barbers, waiter etc.
Problems
people wants ar unlimited, but things we use(resources) to make(produce)them are limited.
economic problem:there exists unlimited wants but limited recoures to produce the goods and services to satify those wants.
Primary sector
Activities extract and use natural resources
Ex; fishing, farming, mining,...
Secondary sectors
Manufactures goods using the raw materials the provide by the primary sectors
Example:building, food processing,...
Tertiary Sectors
Provides services to costumers and other sectors of industry
Example; hotels, banking , hairdressing,..
Capital
The money invested into a business by the owners
Mixed economy
A mixed economy has both a private sector and public sector
: :
Enterprise, business growth and size