Class notes Business Studies

INTRODUCTION TO BUSINESS
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STUDIES
Objectives: By the end of the topic, the learner should be able to:
 Explain the meaning of Business studies
 Explain the importance of Business studies in society


MEANING OF BUSINESS STUDIES
 Business: This is any activity that is carried out by an individual or an
organization concerning provision of goods and services with a view to making
profit.
 Business studies: Is a field of study that deals with production, distribution
and consumption of goods and services.
 Production: Refers to the creation of goods and services. People who are
involved in production of goods and services are referred to as producers - e.g.
manufacturers, farmers, drivers, teachers and doctors.
 Distribution: Refers to the movement of goods and services from producers
to the consumers - e.g. through buying and selling, transporting, storing,
insuring e.t.c.
 Consumption: Refers to the using up of goods and services to satisfy human
wants. Those who use up goods and services are called consumers.


COMPONENTS OF BUSINESS STUDIES
Business studies is made up of the following disciplines:
a. Commerce
b. Accounting
c. Economics
d. Office practice
e. Entrepreneurship
Commerce
This is the study of trade and aids to trade. Trade refers to the exchange of
goods and services for other goods and services or money.
Aids to trade are human activities (services) that assist trade to take place e.g.
transport, banking, warehousing and communication.
Economics
This is the study of how human beings strive to satisfy their endless wants using
the available scarce resources.

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