Business Activity - 1 Flashcards
What is business activity?
Business activity refers to the process of transforming resources (inputs) into goods and services (outputs) that are sold to customers.
What is the main aim of business activity?
The main aim is to satisfy customer needs and wants.
Why are businesses created?
Businesses are created to solve problems, improve living standards, or create value.
What are the inputs in business activity?
Inputs include land, labor, capital, and enterprise (the factors of production).
What are the advantages of business activity?
- Drives economic growth and innovation
2.contributes to wealth generation and job creation.
What are the disadvantages of business activity?
- Can lead to environmental degradation (pollution, resource depletion)
- profit-driven motives may overlook social and ethical concerns.
What are the types of economic activity?
Economic activities are divided into primary, secondary, and tertiary sectors based on the type of goods and services produced.
What is the primary sector?
Involves extracting raw materials from the earth (e.g., agriculture, mining, fishing).
What is the secondary sector?
Involves manufacturing and processing raw materials into finished goods (e.g., factories, construction).
What is the tertiary sector?
Involves providing services to individuals or businesses (e.g., retail, education, banking).
How does a country’s economic development progress?
A country’s economic development often moves from primary to secondary, and finally to the tertiary sector.
What is happening to the tertiary sector in developed economies?
The tertiary sector is expanding in most developed economies as they shift towards a service-based economy.
What are the advantages of the tertiary sector?
Economic diversification helps stabilize economies by reducing dependence on one sector; offers opportunities for skilled jobs and specialization.
What are the disadvantages of overreliance on the tertiary sector?
Can lead to a reduction in industrial output.
What are the environmental concerns related to primary and secondary industries?
Primary and secondary industries may be harmful to the environment.
