A business is an organization which produces goods and / or services. i.e. products. It is involved in the process of turning input into output
Goods: tangible products, such as cars, books
Services: intangible products such as haircuts, a bus ride
Goods: capital goods & consumer goods
- Capital/ Producer goods are products purchased by other business to produces other products: machineries, computers
- Consumer goods: are products sold to the general public. These can be durable (last long time- furniture) or not durable (burger, newspapers)
Purpose: Business exist to satisfy the needs and wants of customers (people, organization and government). They must add value in the production process in order to make profit.
Needs: Basic necessities that a person must have to service eg: food, shelter, clothing
Wants: the deires of people eg; things they would like to have such as mobile phones, burger, larger house, etc.
Customers: are people or organizations that buy a product
- public: consumers