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The Purpose Of Business Activity by Mind Map: The Purpose Of Business Activity
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The Purpose Of Business Activity

Business Objective

This is an aim or a target to work towards

Business Shakeholders & Their main objectives

A SHAKEHOLDER is any person or group with a direct interest in the performance and activities of a business

The economic problem: Needs and Wants

your needs—those things you think necessary for living

your wants—things you would like to have, but which is not essential for living(Unlimited)

ECNOMIC PROBLEM results from there being unlimited wants but limited resources to produce the goods and survices to satisfy those wants →Unlimited wants + Limited resources = SCARCITY

Factors of production—the resources needed to produce goods or services

Business Activity

Why needed?

One thing in commom

Limited resources : the need to choose

Opportunity cost—opportunity cost is the next best alterntive given up by choosing another item

Everybody makes choices,in which we need to consider carefully the opportunity cost to make sure it is not worth more to us than the item we are buying

Making the best use of limited resources:SPECIALIZATION

Value added

The diiference between the selling price of a product or servive and the cost of bought in materials and componnents