Category: Business Studies
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Problems with methods
Problems associated with each method Number of employees A capital intensive firm will employ less employees, but achieve high output and sales because the work will be done by the machines Capital employed A labor intensive firm might not invest in machinery and employ more employees but still achieve high output and sales…
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Methods of measuring size
Different methods of measuring size of business units Number of employees Capital employed Profit Value of output and sales
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Tertiary Sector
Tertiary sector Tertiary sector is the service industry. This sector makes the lives of people much easier by providing services Examples: Banking Hair cutting Teaching
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Secondary Sector
Secondary sector Secondary sector converts the primary goods into manufactured goods The secondary sector of the economy manufactures finished goods. Examples: Construction Textile production Processing
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Primary Sector
Primary sector Primary sector involves changing natural resources into primary products The primary sector of the economy extracts or harvests products from the earth Examples: Fishing, Mining Farming, Forestry
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3 Sectors in Business activity
3 sectors in Business activity Primary sector Secondary sector Tertiary sector
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Objectives of Public enterprise
Objectives of public enterprise To create employment To operate even if no profit is generated To provide certain products or services such as: Electricity Transport
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Objectives of Private enterprise
Objectives of private enterprise To earn high profit To maximize the wealth of shareholders Growth To fulfill needs and wants of the people Examples: Multinational companies Big corporations
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Objectives of Non-profit organisation
Objectives of non-profit organization To provide services to members Not to distribute profit among members Providing employment Operating for the welfare of members Examples: Schools Hospitals
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Needs,Wants,Scarcity
Needs, wants and scarcity Need is a good or service essential for survival Want is a good or service not essential for survival Scarcity is when there are finite resources and infinite needs and wants