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Business activity Chapter 1, A business product different types of goods…
Business activity
Chapter 1
Some definition
NEEDS things that are essential to live
WANTS thing you can live without but you would like to have
SCARSITY: there are not enough goods and services to meet the wants of the population
OPPORTUNITY COST: value of goods or services you gives up when making a choice between different alternative
what does it means added value
Selling products with a price greater than the cost of their production
how business adds value
BRANDING
EXCELLENT SERVICE QUALITY
CONVENIENCE
PRODUCT FEATURES
The importance of specialisation
make businesses more efficient
costumers can provide product at a lower price
specialisation reduce the costs of the production
DIVISION OF LABOUR: production is divided in separated tasks and each employee does just one of those tasks
The purpose of business activity
To provide customer with goods and services that meet their needs and wants
A business product different types of goods and services
CONSUMER GOODS
this are sold to the final consumer, these can be seen and touched
CAPITAL GOODS
physical goods and services, used by business to help produce other goods
CONSUMER SERVICES
non-tangible product
SPECIALISATION people and business concentrate on what they are best at