INTRODUCTION TO BUSINESS STUDIES
By the end of the topic, the learner should be able to:
- Explain the meaning of Business studies
- Explain the importance of Business studies in society.
MEANING OF BUSINESS STUDIES
i) Business: Any activity that is carried out by an individual or an organization concerning provision of goods and services with a view to making profit.
ii) Business studies: Is the study/examination of the business activities in society. These activities are related to the production of goods and provision of services.
-It can also be defined as the study of activities that are carried out in and around production, distribution and consumption of goods and services.
Terms used in Business studies
i) Goods: These are items that are tangible .i.e. they can be touched and felt.
Activity 1: The students to list items in the classroom that can be touched and felt
–Furniture, buildings, books, vehicles e.t.c
ii) Services: These are efforts or acts/actions or activities that may be sold and are intangible (cannot be touched nor felt).
Activity 2: The students to list items that money is paid to get but they cannot touch.
iii) Production: Refers to the creation of goods and services or increasing their usefulness through activities such as transporting them to where they are required. People who are involved in production of goods and services are referred to as
Activity 3: Using the lists of goods and services above, the students to name those involved in their production.
iv) Distribution: Refers to the movement of goods and services from producers to the users. Some activities that take place as goods and services all moved include transportation, storage, insurance, communication, advertising.e.t.c
iiv) Consumption: Refers to the act of using the goods or services produced consumption is the ultimate goal of production. The persons who uses a good or a service is referred to as a consumer.
Activity 4: The students to list the consumers of the goods and services listed in activity (1) and (2) above.
BRANCHES/COMPONENTS OF BUSINESS STUDIES
Business studies as a subject is composed of topics drawn from various disciplines such as:
- Office practice
This is the study of trade and aids to trade. Trade refers to the exchange of goods and services for other goods and services or money.
Aids to trade are human activities (services) that assist trade to take place.
This is the study of how human beings strive to satisfy their endless wants using the available scarce resources.
This refers to a systematic way of recording business activities which all used for decision making.
This refers to all activities that are carried out in an office e.g. communication, filling, clerical work, reproduction of documents e.t.c
This is the study of activities involved in the process of identifying a business opportunity and acquiring the necessary resources to start and run a business. The person who carries out these activities is refered to as an entrepreneur.
IMPORTANCE OF BUSINESS STUDIES IN SOCIETY
Business studies is meant to prepare learners to function as informed consumers, producers and workers in the society.
Some of the benefits of learning business studies include:
- Assists the learners/members of the society to acquire knowledge and awareness of business terminologies which are necessary when discussing business issues such as profit and loss.
- Assists the individuals in appreciating the role of business in society/in provision of goods and services.
- It enables the learners to acquire basic knowledge, skills and attitudes necessary for the development of self and the nation by starting and operating business.
- Equips the members of society with knowledge and skills necessary to start and run a business comfortably.
- Makes the members of society to appreciate the need for good business management practices
- Assists individual to acquire self-discipline and positive attitude towards work
- Equips individual with abilities to promote co-operation in society through trade
- Enables the individual to understand the role of government in business activities
- Equips individuals with abilities to understand the role of communication and information technology in modern business management
- Helps the individuals to develop positive attitudes towards the environment
- Equips the individual with knowledge and skills required to evaluate business performance
- It helps individual to develop various intellectual abilities such as inquiry, critical thinking, analysis, interpretation, rational judgement, innovation and creativity.
- It enables learners to acquire skills for wise buying and selling.
- It creates a firm foundation for further education and training in business and other related fields.
- It enables one to understand and appreciate the basic economic issues that affect the society such as increase in prices of goods and services.