Scribd
Upload
43 views8 pages

Introduction To Business

Introduction to Business

Uploaded by

Maruf Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
43 views8 pages

Introduction To Business

Introduction to Business

Uploaded by

Maruf Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 8

copyright MARUF AHMED

(UGC & Govt. Approved)

WANTS
LUXURY HOUSE
COCA-COLA
CAR
DESIGNER GINS

NEEDS

SHELTER
CLEAN WATER
CLOTHING

WORLD UNIVERSITY
O

BUSINESS STUDIES (LEC-1)


1. Find out which is human needs and wants?

*Shelter, clean water and clothing are needs because they are basic
necessities of life.
*Luxury house, coca-cola, car, designer gins are not basic necessities of life; A
man can easily live without this things, so they are wants.

2. Define what is meant by scarcity when referring to the economic problem?


Scarcity:
Scarcity refers to the tension between our limited resource and unlimited wants and
needs. For individual resource include time, money and skill. For a country, limited
resources include natural resources, capital, labor force and technology.
For Example: if you choose to buy one DVD as opposed to two video tapes, you must
give up owing a second movie of inferior technology in exchange for the higher quality
of one DVD.

1 | MARUF AHMED

copyright MARUF AHMED


So, because of scarcity, people and economics must make decisions over how to
allocate their resources. Economics, in turn aims to study why we make this decisions
and how we allocate our resources most efficiently.

UNLIMITE
D WANTS

LIMITED
RESOURCE

SCARCITY

3. List of four factors of production and explain briefly why each is necessary
for production to take place.
Factors of production:
Factors of production are those resources needed to produce goods or services.
There are four factors of production, they are:
1.
2.
3.
4.

Land
Labor
Capital
Enterprise

RESOURCE OF PRODUCTION:
Land
Rent
Resource
supplies

Labor
Wages

Productions of
goods

Capital
Interest
1. Land: this term used to cover all of the natural resources provided by the nature
and includes fields and forests, oil, gas, metals and other mineral resources
2. Labor: This is the efforts of people needed to make the products.
3. Capital: This is the finance, machinery and equipment needed for the
manufacture of goods
4. Enterprise: this is the skill and risk taking ability of the person who brings the
other resources or factors of production together to produce a good or service.
For example: the owner of a business. These people are called entrepreneurs.

2 | MARUF AHMED

copyright MARUF AHMED


4. Explain with the aid of example, what the term opportunity cost means to
a consumer?
We make choices every day. Because of our limited resources, we have to make
choices. All choices involve giving something up and this is called opportunity cost.
Opportunity cost:
The value of the highest valued alternative that must be forgone when a choice is
made. It is the evaluation of trade off. For example:
1. Going to colleges vs. working
2. McDonalds vs. taco bell
3. New computer vs. holiday

LAND

LABOR

CAPITAL

LIMITED
RESOURCES

ECONOMIC
PROBLEM

UNLIMITED WANTS

SCARCITY

C HOICE IS
NECESSARY

LEADS
OPPORTUNITY COST

3 | MARUF AHMED

ENTERPRISE

copyright MARUF AHMED


6. Explain what is meant by the division of labor?
Division of labor:
The technique of breaking down production into a large number of specialized tasks is
described as the division of labor.
Division of labor is when the production progress is split up into different
tasks and each worker performs one of these tasks.
- Advantages:
** Increase efficiency and output.
**Takes less time
**Specialized people perform their specialized tasks in their respective fields

- Disadvantages:
** Workers can become bored, efficiency
Might fall.

7. Why is a business likely to increase output if it adopts division of labor?


Business likely to increase output if it adopts division of labor because:
1. No two people have exactly the same abilities and interests. By creating a very
large number of different jobs, the division of labor makes it easier for people to
find jobs which are well suited to their particular abilities and interests.
2. Practice makes a man perfect when a worker concentration a task which requires
no more than a few relatively simple movements, he/she develops the ability to
do the work with great speed and dexterity.
3. If a person has to carry out several operation in the progress of production,
he/she will have to move from one part of the workshop to another.IN specialized
production it is the product which moves to worker no time is wasted by
movement of worker.
When a worker is responsible for several different operations, he/she will
have a vast of tools for each of the different tasks. For large part of the time, but
division of labor lessens the work load of the labor.
So, after discussing all this reasons, we easily realize that if a business adopts division
of labor, it will increase the output.

4 | MARUF AHMED

copyright MARUF AHMED


9.

State three benefits of the society of business activity.

1) Supply of Standard Products and Services: The social objectives of a business are to supply standard
goods and materials for satisfying humans needs comfort and luxury is another social aim of business. A true
businessman supplies pure and standard products and services and thus renders a valuable service to the
consumers. The people feel happy as they get food, shelter, clothes and other standard goods for their
consumption. Thus social development and welfare of people take place.
2) Avoid Excessive Profits Making and Anti-Social Activities: The
Intent and purpose of real business is to keep away from blackmarketing, excessive profit making, hoarding
and other anti-social activities. Any types of illegal, unlawful and anti-state activities do not confirm to the
principles of business.
3) Acquisition of Social Status: Man invests capital into business with a view to earning the social status and
influence. A businessman wants to exert social influence through earning and spending money in welfare
activities and social services. Many businessmen establish schools, colleges and hospitals for this purpose.
10. What is meant by business objectives?

Business objectives:
Are the aims or targets that a business works towards.
Most common business objectives are:
- To make profit.
- To increase added value.
- To expand the business.
- To achieve business survival.
- To provide a service to the community.
11. Give three examples of the kind of objectives that a business owned by
private individuals could establish.
Profit:
When a business is owned by private individuals, rather than the government, it is
usually the case that the business is run to make profits. Profits are needed to pay a
return to the owners of the business.
Value added:
Value added is the difference between the selling prices of a product or service and the
cost of bought in materials and components. So, the private individuals also added
these things with their business.
Growth:
To make the jobs more secure and to increase salaries and status the owners and
managers of a business may aim for growth. So private individuals also wish to achieve

5 | MARUF AHMED

copyright MARUF AHMED


it. But growth will only be achieved if the business consumers are satisfied with the
products and services being provided.

12. Define value added.

Value added:
The difference between the selling price of a product or service
And the cost of bought in materials and components.
Value added is not the same as profit.
Example:
The selling price of a newly built house is $ 100000. The value
Of the bought in bricks, cement, wood, and other materials was $ 15000. The value
added by the builder is $ 85000, but this is not the builders profit as so many other
costs and expensed have to be taken into account too.
14. Explain two reasons why business managers might set growth as a
business objective?
Business managers might set growth as a business objective because:
Make jobs more secure:
If the of the business is larger the job of the managers will be more secure. If the
business grow more, the profit of the business will be grow up ,and responsibilities of
the managers will be grow up, so his job will be more secure.
Increase salaries and status:
If the size of the business is increase as well as their salaries and status will be increase
so. Because for the reason of growth the name and product of the company will be
reach to more people as well as the selling of product will be larger. As a result profit of
the company will be increase as well as the salaries and the status of the manager will
be improved. For example: the managers of robi,citycell,grameenphone get more
salaries than other normal company manager as well as their status is very high and
job is very secure.
15. List three examples of the stake holders in a business.
Owners:
They put capital in to set up and expand the business
They will take a share of the profits if the business succeeds
They are risk takers
Workers:

6 | MARUF AHMED

copyright MARUF AHMED


They are employed by the business, they are also called employers
They have to follow the instructions of managers and they may need training to
do their jobs efficiently.
They may be employed on full or part-time contracts and on temporary and
permanent basis.
Government:
Govern enters are responsible for the economy of the country
They pass laws to protect workers and consumers.
16. Using examples, explain reasons why conflict might occur between the
objectives of this stakeholder group
Olio is large oil operating in a country. The following groups are interested in the work
of this company.
Owners of the company: they are likely to want the business to work towards as
much profit as possible.
Directors: they will be interested in growth of the business as their salaries are likely
to depend on this.
Workers: they will want as many jobs as possible with security of employment.
Local community: they will be concerned about jobs too, but they will be worried
about the pollution from the oil refinery.
Consumers: they will want reasonably priced products of appropriate quality-or they
may buy goods from competitors.
In practice, these objectives could conflict with each other. For example:
1. It could be that a cheap method of production increases profits but causes more
pollution
2. A decision to expand the plant could lead to dirtier, noisier local environment.
3. A profitable decision to introduce new machines could reduce the jobs at the
refinery.

EXTRA QUESTIONS:
NEEDS:
Human needs are states of felt deprivation. They include basic physical needs for food,
clothing, warmth and safety; social needs for belonging and affection and individual
needs for knowledge and self expression.

7 | MARUF AHMED

copyright MARUF AHMED


Wants:
The form of human needs take as shaped by culture and individual personality. For
example: an American needs food but wants a big Mac, French fries and a soft drink.
**Define stakeholder?
A stakeholder:
Is any person or group with a direct interest in the performance and activities of a
business, such as?
- Owners,
- Managers,
- Workers,
- Consumers,
- Government,
- Community.

8 | MARUF AHMED

You might also like