Business Studies Essay

5792 WordsDec 4, 201424 Pages
Business Studies | January 29 2011 | Business Studies Assignment | Synopsis | Contents Chapter 1- The purpose of business Activity The purpose of business activity, the chapter will tell us about the following contents:- Needs and wants-: Every person in the world has needs and wants; every person in the world has certain needs and certain wants. Need is something essential for living and a want is something that is a desire for something even though it is not essential for living. Not a lot of people are able to fulfill their wants and some of them cannot even fulfill their needs because they are very poor or they are not able to afford it. Therefore we have come to a result that:- Factors of production The term ‘Factors of production’ can be summarized as those resources which are essential for a business to production furnished goods. For example- Land, Labor, Capital and enterprise. 1. Land: The term land can be summarized as a source of natural resources or raw materials to a business to be processed as furnished goods. For example, A furniture factory may use wood from trees that is been derived from the land that is one of the factors of production. 2. Labor: The term labor can be defined as the effort and the work of the workers and the employees that is needed to make goods or products for a business. For example, in a garment factory there are so many workers engaged in cutting, designing, and sewing the clothes; it means at every step some efforts are required in order to produce good or products for a business purpose. 3. Capital: The capital of a business is the investment that is required to start a business. It can also be used for other purposes such as machineries and the equipments needed for manufacturing. There are two types of capital a. Seed capital: it is the capital or the initial investment used to

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