1. business activity

• need is essential for living
• want which people would like to have
• economic problem is limited resources but unlimited wants
• four factors of production are land, labour, capital and enterprise
• land : an area to start up the business
• labour : people that work to make products and service
• capital : the money, finance, machinery and equipment to start up the business
• enterprise : the skill and motivation that drives entrepreneur to start up the business
• Opportunity: the choice that given up by another item/choice
• specialisation : concentrate on what they are best at
• division of labour : the split up of tasks and each worker performs one of the tasks
• the purpose of a business is to satisfy the needs and wants of the customers.
• added value is the difference between selling price and the cost that make it
• increase the price and keep the cost the same or reduce the cost and keep the price are 2 ways to increase added value