What is business activity? - Short notes

1. Goods and Services.

A business is an organization that provides goods and services. Business activities involve: producing output, consuming goods and services, making profits, etc. There are two types of goods and services: consumer goods and producer goods. Consumer goods are goods and services that are sold to ordinary people rather than other businesses. Example: magazine, crisps, handbag, banking, air travel, education, garden design, etc. Producer goods are goods and services produced by one business for another.

2. Needs and Wants.

Businesses have to satisfy people's needs and wants. Needs are the basic requirements for human survival. Example: water, warmth, shelter, clothing, and food. Wants are people's desires for goods and services. They are infinite or unlimited. Most people want more than they already have which is a problem because resources used by businesses are finite. Having a limited amount of resources available is known as scarce resources.

3. Types of Organizations and their Purpose.