What is Business ?

Business

What is Business ? Business exists to satisfy consumers needs and wants, by producing goods and services. These goods and services are produced and then sold in an attempt to make profit.

What are we going to Learn today? We will be able to define the following terms : Business, Needs and Wants and Opportunity Cost We will do this by : Discussion, and Worksheet Activity

Needs Wants &

What would you like to have? In pairs write a list of all the things you would like to have, then decide if they are Needs or Wants.

Wants What would you like to have?

Needs

Task 1 Read through the following slide, copy down the sentences and based on what we have discussed already try and fill in the gaps

Business exists to meet our _ _ _ _ _ and _ _ _ _ _ by producing _ _ _ _ _ and _ _ _ _ _ _ _ . They must have the right _ _ _ _ _ _ _ at the right _ _ _ _ _ . This has introduced the idea of _ _ _ _ _. We cannot always satisfy all our _ _ _ _ _ and _ _ _ _ _ . In order to have one thing, we must _ _ _ _ _ _ something else.

services needs product up Need some help ? wants give goods money price

They must have the right _ _ _ _ _ _ _ at the right _ _ _ _ _ . Business exists to meet our _ _ _ _ _ and _ _ _ _ _ by producing _ _ _ _ _ and _ _ _ _ _ _ _ . n e e d s w a n t s g o o d s s e r v I c e s They must have the right _ _ _ _ _ _ _ at the right _ _ _ _ _ . p r o d u c t p r I c e This has introduced the idea of _ _ _ _ _. mo n e y We cannot always satisfy all our _ _ _ _ _ and _ _ _ _ _ . n e e d s w a n t s In order to have one thing, we must _ _ _ _ _ _ something else. g I v e u p This is what is called the OPPORTUNITY COST

"The Economic Problem" To Buy Or Not To Buy That Is The Question We can’t always have everything we want. Sometimes we have to make a choice. This is known as “OPPORTUNITY COST : the next best option we could have chosen instead.

Sue receives £10 pocket money Sue receives £10 pocket money. She wants to go to the cinema and ice-skating at the weekend. By the end of the week she only has £3.50 left. She has decided to go to the cinema as the film finishes next week. Sue’s wants are: ___________________________________ The limiting factor is:________________________________ The Opportunity Cost of going to the cinema is: ___________ In the same way as individuals are forced to make choices due to scarce resources, businesses and governments also have to make decisions.