X+1.1+Nature+Of+Business+Activity

= 1.1 Nature Of Business Activity =

__KEY WORDS__: INPUTS - PROCESSES - OUTPUTS PROCESS / FUNCTION AREAS : MARKETING, PRODUCTION, FINANCE & HUMAN RESOURCES PRODUCTS : GOODS V SERVICE GOODS : CONSUMER, CAPITAL, PRODUCER PRODUCTION CHAIN ADDED VALUE SECTORS : PRIMARY, SECONDARY, TERTIARY FACTOR OF PRODUCTION : LAND, LABOUR, CAPITAL & ENTERPRISE SPECIALISATION & DIVISION OF LABOUR OPPORTUNITY COST

Key issues we looked at
 * what a business is, and the basic economic problem of scarcity that drives the environment in which businesses operate.
 * the different stages that the products inputs (raw materials) pass through to become the final required output, and how the inputs may increase in value of they pass along the stages/sectors.
 * the different function areas of a business - each of which has a Unit dedicated to it later on.
 * the consequences to economies of moving from a focus on primary sector, to secondary, to tertiary.

MrM says //"Most of this unit is just preparing the background for the topic. It is not usually tested in IB exams directly, although students will be expected to incorporate these ideas, and use the correct terminology, when answering questions on other topics. A possible exception is the idea of 'specialisation' - & 'added value' certainly comes up again in the Marketing and Production units"//

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