INTRODUCTION TO BUSINESS STUDIES
Definition of terms
a. Business:
Any activity that is carried out by an individual or an organization concerning provision of goods
and services with a view to making profit.
b. Business studies:
This Is the study/examination of the business activities in society. These activities are related to
the production of goods and provision of services. -It can also be defined as the study of activities
that are carried out in and around production, distribution and consumption of goods and services.
c. Goods:
These are items that are tangible .i.e. they can be touched and felt.
d. Services:
These are efforts or acts/actions or activities that may be sold and are intangible (cannot be touched
nor felt).
e. Production:
Refers to the creation of goods and services or increasing their usefulness through activities such
as transporting them to where they are required. People who are involved in production of goods
and services are referred to as producers.
f. vi) Distribution:
Refers to the movement of goods and services from producers to the users. Some activities that
take place as goods and services all moved include transportation, storage, insurance,
communication, advertising.e.t.c
g. Consumption:
Refers to the act of using the goods or services produced consumption is the ultimate goal of
production. The persons who uses a good or a service is referred to as a consumer.
Business studies and other disciplines
Business studies as a subject is composed of topics drawn from various disciplines such as:
a. Commerce
b. Accounting
c. Economics
d. Office practice
e. Entrepreneurship
a) Commerce
This is the study of trade and aids to trade. Trade refers to the exchange of goods and services for
other goods and services or money. Aids to trade are human activities (services) that assist trade
to take place.
b) Economics
This is the study of how human beings strive to satisfy their endless wants using the available
scarce resources.
c) Accounting
This refers to a systematic way of recording business activities which all used for decision making.
d) Office practice
This refers to all activities that are carried out in an office e.g. communication, filling, clericalwork,
reproduction of documents e.t.c
e) Entrepreneurship
This is the study of activities involved in the process of identifying a business opportunity and
acquiring the necessary resources to start and run a business. The person who carries out these
activities is refered to as an entrepreneur.
IMPORTANCE OF BUSINESS STUDIES IN SOCIETY
Business studies is meant to prepare learners to function as informed consumers, producers and
workers in the society.
Some of the benefits of learning business studies include:
1. Assists the learners/members of the society to acquire knowledge andawareness of business
terminologies which are necessary whendiscussing business issues such as profit and loss.
2. Assists the individuals in appreciating the role of business in society/in provision of goods
and services.
3. It enables the learners to acquire basic knowledge, skills and attitudes necessary for the
development of self and the nation by starting andoperating business.
4. Equips the members of society with knowledge and skills necessary to start and run a
business comfortably.
5. Makes the members of society to appreciate the need for good business management
practices
6. Assists individual to acquire self-discipline and positive attitude towards work
7. Equips individual with abilities to promote co-operation in society through trade
8. Enables the individual to understand the role of government in business activities
9. Equips individuals with abilities to understand the role of communication and information
technology in modern business management
10. Helps the individuals to develop positive attitudes towards the environment
11. Equips the individual with knowledge and skills required to evaluate business performance
12. It helps individual to develop various intellectual abilities such as inquiry, critical thinking,
analysis, interpretation, rational judgement, innovation and creativity.
13. It enables learners to acquire skills for wise buying and selling.
14. It creates a firm foundation for further education and training in business and other related
fields.
15. It enables one to understand and appreciate the basic economic issues that affect the
society such as increase in prices of goods and services.
