Unit 1 Business and its Environment Enterprise

DO NOW Write down a definition of Business in your own words? (5 mins)

Factors of Production

Business Activity A business is any organisation that uses resources to meet the needs of customers by providing a product or service that they demand. Without business activity we would be dependent on what we can grow and make ourselves. Businesses meet the needs of customers.

Dulip starts his Business Activity page 3 Business Studies Text Book. (15-20 mins)

Factors of Production Land - This general term includes not only Land itself but all of the renewable and non renewable resources of nature, such as coal, crude oil and timber. Labour – manual and skilled labour make up the workforce of the business.

Factors of Production Capital - This is not just the finance needed to set up a business and pay for its continuing operations, but also all of the man made resources used in production. These include capital goods such as computers, machines, factories, offices and vehicles. Enterprise – this is the driving force, provided by risk taking individuals, that combines the other factors of production into a unit capable of producing goods and services.

What does a Business Need? A Business Needs LabourGovernmentCapitalEnterpriseLandCustomersSuppliers

Homework Why might someone start a business? Discuss two factors of production and why businesses need them?

DO NOW List the four Factors of production and there definitions? (homework out for checking.)

Added Value Added Value – the difference between the cost of purchasing raw materials and the price the finished goods are sold for. I.e. Building industry - they use timber and build houses. Therefore increasing the value of the finished goods. Adding value normally increases costs.

Added Value How could the below businesses add value to the goods they buy in? (20 mins)

Economic Activity The world has great wealth and great scarcity. Poor people and rich people cant satisfy all of there needs and wants. This means we are faced with a choice. The purpose of economic activity is to provide for as many of our wants as possible.

Opportunity Cost The benefit of the next most desired option which is given up. Provide two examples of opportunity cost for the below groups? -Government -School -Consumers (you and Me) -Businesses -Charities (10-15mins)

Revision Questions Page 14 Questions 1, 2 and 3

Homework Explain how a supermarket could add value to the food and other stock it buys in? Explain the concept of opportunity cost and give three examples of it? Blog Duty –Student to discuss today's lesson, others to check and comment