CHAPTER ONE

INTRODUCTION TO BUSINESS ACTIVITIES

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WHAT/WHO/WHERE/WHY/WHEN & HOW?

Businesses add value to the community by:

Contribute to wealth of country

Provide jobsfor people

Provide goodsand services to

people

Goods-producing Service

Produce goods that can be SEEN and TOUCHED

Produce services that CANNOT be seen or touched

but can be EXPERIENCED

Produce goods with the use of machines and/or labour

Services are performed when sellers interact with customers

Examples Examples

Creative Technology Ltd – manufacture sound cards for

computers

Chan Brothers Travel – Travel and tourism

Breadtalk – breads, pastries and cakes

Jean Yip Hairdressing – for hair treatments and services

TYPES OF BUSINESSES

Resources

Land Labour

EnterpriseCapital

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GettingMoney

Personal Savings

Loan from family membersor friends

Trade Credit*Pay your

suppliers later

Bank Loan

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Interest Calculation

Interest = Amount borrowed x Rate of interest

per year

What affects Businesses

Economic Demographic

Political and legal

Social

GlobalTechnological

Competition

Direct(Sells same/

similar products)

Indirect(Sells products that meet

the same needs of customers)

Fast food McDonald Burger King

Fast food KFC MosBurger

Petrol Shell Caltex

Movies Cathay Shaw

School Shoes Bata Converse

Smartphones Apple Blackberry

TS Vision / Video Ezy

Golden Village

Swensons’ McDonald

KFC Pizzahut

EBS Chapter 1