Concept, components and importance of business studies Notes, Quizzes & Revision

Business – refers to any activity that is carried out by an individual or an organization concerned with provision of goods and services with the aim of making profits

Business studies– it is the study of the activities that are carried out in and around production, distribution and consumption of goods and services

Goods – These are items which are tangible i.e. can be touched and felt e.g. furniture, buildings, bread. Etc

Services – These are actions or activities that may be sold. They are intangible e.g. teaching, banking, hairdressing etc

Production – It is the creation of goods and services or increasing their usefulness. Its done by producers e.g. farmers.

Distribution – It’s the movement of goods and services from the producer to the user. Involves transport, communication etc

Consumption – Refers to using of goods/service mostly done by consumers

Concept of business studies in Kenya

Commerce

It is the Study of trade and aids to trade.

This component will help you understand how goods are distributed from where they are produced to where they are required

Trade is the exchange of goods and services for other goods or services or for money.

Accounting

It’s a systematic way of recording/keeping accurate  business records arising from trading activities for decision making.

Financial literacy

This is the ability to understand effectively use various financial skills

These skills include personal financial management, budgeting and investing.

economics

 It’s the study of how human beings strive to satisfy their unlimited needs and wants using limited resources available.

Human wants are the desires that people strive to satisfy using goods and services. Resources – Things that are required in order to satisfy human wants

• Entrepreneurship

 It’s the study of activities involved in identifying a business opportunity and acquiring necessary resources to start a business.

Importance of business studies

1. It equips us with the knowledge and skills to successfully start and run a business
2. It helps us to appreciate the importance activities in the provision of goods and services.
3. It assists individuals in acquiring skills for wise buying and selling
4. It helps us understand the country’s economy
5. It assists individuals in acquiring self discipline and positive attitude towards work.
6. It helps us understand the role of communication and modern technology in business management.
7. It provides us with the knowledge and skills necessary for identifying business opportunities.
8. It helps us understand and appreciate the role of government in business activities.
9. It helps understand and appreciate the basic economic issues that affect society such as increase in prices of goods and services.
10. It creates a firm foundation for further education and training in business and other career development.

Careers and opportunities related to business studies

A career refers to a job, a profession or an occupation that one chooses as one’s life’s work.

A career helps one to earn money or make a living.

Some of these jobs include

1. Teacher
2. Bookkeeper or accountant – a person who keeps records of business transactions, inspects and analyze financial accounts.
3. Salesperson – a person whose job is to sell products or services.
4. Self employed people– some people utilize the skill and knowledge learned from business studies to start and manage their businesses.
5. Banker
6. Marketer

7. Auditor.

8. Logistics analyst.

9. Human resources specialist.

10. Accountant.

11. Operations analyst.

12. Marketing manager.

13. Financial advisor.

14. Financial analyst

15. Entrepreneur