Topic 1 - Role of Business in Society

Topic 1 - Role of Business in Society

N5 Business Management

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Learning Intentions / Success Criteria

Learning Intentions

The role of business in society

Success Criteria

By end of this topic you will be able to: ? explain how businesses satisfy

human wants and create wealth ? explain how businesses operate in

different sectors of industry ? describe the different sectors of the

economy.

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Human Needs and Human Wants

? Needs are essential for us to be able to live and include water, clothing, food and shelter.

? Wants are things that we would like to have, but can live without.

? We can live without a mobile phone, television and holidays, but we couldn't live without food or water.

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Roles of Businesses

? Produce goods and services to help us satisfy our needs and wants.

? To make a profit ? some of the profit is re-invested back into the business to expand, pay debts, buy more stock, etc.

? Develop ideas - to improve and/or produce new products and services.

? Fill a gap in the market to increase profit and have a larger number of customers compared to their competitors.

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Goods (Tangible)

? Goods are things we can see, touch and pick up (tangible).

? Examples of goods are DVDs, a chocolate bar, clothes and a newspaper.

? Some goods are durable (can be used more than once) such as a washing machine, whereas some are non-durable (can't be used more than once) such as a plaster.

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