Introduction to Business Studies

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Specific Objectives

​By the end of the topic, the learner should be able to:

1. explain the meaning of business studies
2. explain the importance of business studies in society.

Meaning of business studies

Definition of Terms

Business

The term business refer to any activity that is carried out by an individual or organization with an aim of making a profit.

Business studies

This is the study of the activities that are carried out in and around production, distribution and consumption of goods and services.

Goods

These are items or things that are tangible in that they can be touched and felt.

Services

These are actions or activities that may be sold and they are intangible.

Production

This is the Creation of goods and services or increasing their usefulness through activities such as transporting them to where it is required. People who produce goods and services are called producers.
Distribution
This is the movement of goods and services from producers to the users. Activities taking place during distribution.

1. Transportation
2. Storage
3. Insurance.
4. Communications
5. Buying and selling
6. Banking
7. Advertising

Consumption

This is the usage of goods and services. Those who use the goods are called consumers.

Economics

This is the study of how human beings strive to satisfy their endless wants using the available scares resources.

Commerce

This is the study of trade and aids to trade. Aids to trade are human activities or services that assist trade to take place such as transport, banking, warehousing and communications.

Accounting

This refers to a systematic way of recording business activities which are used for decision making.

Office Practice

This refers to all the activities that are carried out in an office. For example, communication, filing, reproduction of documents and clerical work.

Entrepreneurship

This is the study of the activities involved in the process of identifying a business opportunity and acquiring the necessary resources to start and run a business.

Importance of business studies in society

1. Assist members of the society to relate the knowledge,skills and attitudes acquired to the day to day running of the business.
2. Equips the members of the society with skills and knowledge to start and run a business
3. Assist the individuals with in appreciating the role of business in provision of goods and services.
4. Makes the members of the society to appreciate the need for good business management practices.
5. Helps individual to attain self-discipline and positive attitude towards work.
6. Equips the individual with knowledge and skills to require to evaluate business performance.

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