Business Management (National 5)

N5 Bus Man – 1.1: Business Types © BEST Ltd ‹#› Licensed to: Turnbull High School

BUSINESSES are organisations that are formed to provide:

◦ GOODS◦ SERVICES

GOODS and SERVICES can be:

◦ DURABLE◦ NON DURABLE◦ CAPITAL◦ CONSUMER

N5 Bus Man – 1.1: Business Types © BEST Ltd ‹#› Licensed to: Turnbull High School

The process of businesses using the factors of production to produce goods and services to satisfy the needs and wants of consumers is known as the BUSINESS CYCLE.

This process is a cycle because it goes on over and over again because consumers UNLIMITED wants constantly create new things that businesses can produce.

The cycle means that if a business is to succeed it MUST pay particular attention to minimising its externalities and satisfying consumers unlimited wants to stop the business failing.

Businesses identify consumers NEEDS and WANTS and decide to make

GOODS and SERVICES to satisfy

them.

Businesses employ the FACTORS OF PRODUCTION to

PRODUCE the desired goods and

services and increase WEALTH.

Wages from employment allow

consumers to CONSUME goods

and services.

Consumers have NEEDS and (NEW and UNLIMITED)

WANTS.

THE BUSINESS CYCLE

N5 Bus Man – 1.1: Business Types © BEST Ltd ‹#› Licensed to: Sample High School