Business Chapter 1 Gr 10

Business

An organization that produces and/or sells goods and/or services to satisfy the needs and wants of consumers.

Producers

Individuals or companies that make goods or provide services.

Consumers

Individuals who buy goods and use services to fulfill their needs or wants.

Goods

Physical items that can be purchased and used, such as a computer or car.

Services

Non-tangible acts that provide benefits to consumers in exchange for payment, like haircuts or consultations.

Consumer Goods

Goods purchased directly by consumers to satisfy personal needs and wants.

Industrial Goods

Goods purchased by businesses for production purposes, such as flour for baking.

Ultimate Consumer

The individual who buys goods for personal use.

Industrial Consumer

A business that uses goods for its own operations, like a restaurant buying bread.

Factors of Production

Resources needed to produce goods and services, including human resources, natural resources, capital, and technology.

Profit

The income remaining after all costs and expenses are paid; calculated as Revenue - Expenses.

Expenses

The costs incurred in running a business, such as wages and materials.

Solvent

A business that can cover all its expenses but may not be making a profit.

Competition

The rivalry among businesses to attract consumers, influencing prices and quality.

Direct Competition

Businesses that offer similar goods or services to the same market.

Indirect Competition

Businesses that fulfill the same need in different ways.

Demand

The quantity of goods or services consumers are willing to buy at a specific price.

Law of Demand

As the price of a good/service decreases, the quantity demanded increases.

Supply

The quantity of goods or services that businesses are willing to provide at various prices.

Law of Supply

Higher prices typically lead to an increase in the quantity supplied.

Price

Determined by the interaction of supply and demand; influenced by production costs.

Obsolete

Items that are no longer in use or useful, such as VCRs or typewriters.

Maslow’s Hierarchy of Needs

physiological, safety, belongingness, ego, self- actualization

Decision-Making Model

A structured approach for businesses to solve problems and adapt to consumer needs and market changes.

Steps in the Decision-Making Model

Define the decision, identify alternatives, evaluate pros and cons, make a decision, and evaluate the decision.

a want

a non essential product to survival

a need

an essential product for survival

factors affecting demand

consumer’s income, increase in income level ( increases spending), decrease in income level ( decreases spending), change in expectation of future conditions, change in population

factors affecting supply

change in the number of producers, price of related goods, change in technology, change in expectation, change in cost of production

supply and demand curve

higher price higher supply, lower price higher demand

3 consumers benefits of competition

higher product quality, production and introduction of new products, lower prices

examples of innovation

cyclotron ( cancer treatment), beanless coffee, smart swim goggles with AR