Objectives: By the end of the topic, the learner should be able to:

1. Explain the meaning of Business studies
2. Explain the importance of Business studies in society.

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.

 Business studies: 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

Goods: These are items that are tangible .i.e. they can be touched and felt.

Activity 1: The students to list items in the classroom that can be touched and felt

-Furniture, buildings, books, vehicles e.t.c

iv) Services: These are efforts or acts/actions or activities that may be sold and are intangible (cannot be touched nor felt).

Activity 2: The students to list items that money is paid to get but they cannot touch.

v)  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

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

vii) 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.

COMPONENTS/SCOPE OF BUSINESS STUDIES

Business studies as a subject is composed of topics drawn from various disciplines such as:

1. Commerce
2. Accounting
3. Economics
4. Office practice
5. Entrepreneurship

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.

Economics

This is the study of how human beings strive to satisfy their endless wants using the available scarce resources.

Accounting

This refers to a systematic way of recording business activities which all used for decision making.

Office practice

This refers to all activities that are carried out in an office e.g. communication, filling, clerical work, reproduction of documents e.t.c

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 referred 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 society.

Some of the benefits of learning business studies include:

1. Assists the learners/members of the society to acquire knowledge and awareness of business terminologies that are necessary when discussing business issues such as profit and loss.
2. Assists the individuals in appreciating the role of business in society/in the 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 and operating a business.
4. Equips the members of society with the knowledge and skills necessary to start and run a business comfortably.
5. Makes the members of society appreciate the need for good business management practices
6. Assists individual to acquire self-discipline and a 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 an 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 society such as an increase in prices of goods and services.