Definition of terms used in business studies
Business – refers to any activity that is carried out by an individual or an organization concerned with provision of goods and services with the aim of making profits
Business studies– it is the study of the activities that are carried out in and around production, distribution and consumption of goods and services
Business environment – these are the business surroundings which may be internal or external
Goods – These are items which are tangible i.e. can be touched and felt e.g. furniture, buildings, bread. Etc
Services – These are actions or activities that may be sold. They are intangible e.g. teaching, banking, hairdressing etc
Production – It is the creation of goods and services or increasing their usefulness. Its done by producers e.g. farmers.
Distribution – It’s the movement of goods and services from the producer to the user. Involves transport, communication etc
Consumption – Refers to using of goods/service mostly done by consumers
Disciplines in business studies
- Economics – it’s the study of how human beings strive to satisfy endless wants using the available scarce resources. Human wants are the desires that people strive to satisfy using goods and services. Resources – Things that are required in order to satisfy human wants
- Commerce – Study of trade and aids to trade. Trade is the exchange of goods and services for other goods or services or for money.
- Accounting – It’s a systematic way of recording business activities which are used for decision making.
- Office practice – these are activities carried out in the office e.g. communication, filling, reproduction of documents etc.
- Entrepreneurship – It’s the study of activities involved in the process of identifying a business opportunity and acquiring necessary resources.
Importance of business studies in the society
- Assists members to relate the knowledge, skills and attitude acquired to day to day business activities.
- Equip members with knowledge and skills to start and run a business
- Assists individuals in appreciating the role of business studies in provision of goods and services
- Makes the members to appreciate the need of good business management practice.
- Assist individuals to acquire self discipline and positive attitude towards work.
- Equips individuals with abilities to promote cooperation
- Enables individuals to understand the role of government in business.
- Equips individuals with abilities to understand role of communication and modern technology to business management.
- Help individual develop positive attitude towards the environment
- Equips individuals with knowledge and skills required to evaluate business performance