Business Studies Form 1 Notes : CHAPTER ONE – INTRODUCTION TO BUSINESS STUDIES

BUSINESS STUDIES NOTES

FORM ONE

CHAPTER ONE

INTRODUCTION TO BUSINESS STUDIES

Definition of terms used in business studies

Business – refers to any activity carried out by an individual or an organization concerned with the provision of goods and services with the aim of making profits.

Business studies – the study of activities carried out in and around production, distribution, and consumption of goods and services.

Business environment – the business surroundings which may be internal or external.

Goods – items that are tangible, i.e., can be touched and felt, e.g., furniture, buildings, bread, etc.

Services – actions or activities that may be sold. They are intangible, e.g., teaching, banking, hairdressing, etc.

Production – the creation of goods and services or increasing their usefulness. It is done by producers, e.g., farmers.

Distribution – the movement of goods and services from the producer to the user. It involves transport, communication, etc.

Consumption – the use of goods/services, mostly done by consumers.

Disciplines in business studies

• Economics – the study of how human beings strive to satisfy endless wants using the available scarce resources. Human wants are desires that people strive to satisfy using goods and services. Resources are things required to satisfy human wants.
• Commerce – the study of trade and aids to trade. Trade is the exchange of goods and services for other goods, services, or money.
• Accounting – a systematic way of recording business activities used for decision making.
• Office practice – activities carried out in the office, e.g., communication, filing, reproduction of documents, etc.
• Entrepreneurship – the study of activities involved in identifying a business opportunity and acquiring necessary resources.

Importance of business studies in society

• Assists members to relate the knowledge, skills, and attitude acquired to day-to-day business activities.
• Equips members with knowledge and skills to start and run a business.
• Helps individuals appreciate the role of business studies in the provision of goods and services.
• Makes members appreciate the need for good business management practices.
• Assists individuals to acquire self-discipline and a positive attitude towards work.
• Equips individuals with abilities to promote cooperation.
• Enables individuals to understand the role of government in business.
• Equips individuals with abilities to understand the role of communication and modern technology in business management.
• Helps individuals develop a positive attitude towards the environment.
• Equips individuals with knowledge and skills required to evaluate business performance.