topic 1

• A business is an economic system where goods and services are exchanged for one another or money, requiring individuals to invest savings and energy, with risk-taking being essential for its existence
• A business provides various activities towards society including work, employment, trade, profession, dealings, commercial activities, and goods & services
• Work is physical or mental effort directed towards producing a good or providing a service, also known as occupation or job
• Employment is when an individual is given a job in exchange for services, while trade involves the exchange of ownership of goods and services for money
• Profession is a career requiring a high level of education, dealings involve commercial activities, and commercial activity is when a business provides goods and services to customers in exchange for money
• Goods are categorized into durable, semi-durable, and non-durable, with examples like houses, cars, and food respectively
• Needs are essential for survival, including food, water, shelter, and clothing, while wants are desires that are not essential for survival but make life easier and more interesting
• Wants become needs when individuals feel they cannot live without them and consider them important for their everyday life
• Production is the making of goods and services for oneself or others in exchange for money, essential for providing individuals with required goods and services
• Exchange is the changing of ownership of goods and services for money or other goods or services, with barter being the exchange without the use of money
• Specialization is when individuals produce goods and services they can do best in exchange for money or other goods and services, which can be by product or by task/process
• Factors of production include land, labor, capital, and entrepreneurship, with land encompassing all resources provided by the earth and labor involving human work, categorized into professionals, skilled, semi-skilled, and unskilled workers
• Attachment is a strong reciprocal emotional bond between an infant and a primary caregiver

  
• Schaffer and Emerson's 1964 study on attachment:

  • Aim: identify stages of attachment / find a pattern in the development of an attachment between infants and parents
  • Participants: 60 babies from Glasgow
  • Procedure: analysed interactions between infants and carers
  • Findings: babies of parents/carers with 'sensitive responsiveness' were more likely to have formed an attachment
• Freud's superego represents internalized societal values and standards
• Skilled workers: e.g., Mechanic, Electrician, Computer Programmer

  Semi-Skilled Workers: have basic knowledge and specialized training, e.g., Receptionist, Clerk

  Unskilled Workers: have little or no education, e.g., Driver, Factory Operator, Cleaner
• Remuneration: payment given to workers for their work, can be in the form of Wage or Salary

  • Wages: paid weekly/fortnightly, usually to unskilled and semi-skilled workers
  • Salaries: paid monthly, typically to professional and skilled workers
• Capital: resources needed for a business to start and continue, includes Liquid and Fixed Capital

  • Liquid Capital: easily convertible to money
  • Fixed Capital: items remaining in the business for a long time to help produce goods and services, e.g., buildings, machinery
• Entrepreneur: organizes, operates, and assumes the risk for a business, willing to risk money and time, takes decisions and risks
• Factors of Production:

  • Land
  • Labour
  • Capital
  • Entrepreneur
• Stages of Production:

  • Primary: work requiring land or items from the land
  • Secondary: industries changing raw materials into finished products
  • Tertiary: services provided to individuals and businesses
• Processing: changing something from one form to another through established procedures, e.g., processing milk into cheese
• Assembly/Production Line: organizing workers and equipment in step-by-step tasks to increase production efficiently
• Distribution: movement of goods and services until they reach the final customer
• Refining: processing crude oil into various by-products like petrol, diesel, aviation fuel
• Goods can be categorized into Consumer Goods and Capital Goods

  
• Consumer Goods are goods used by individuals to satisfy their needs, e.g., food, personal computer
• Capital Goods are owned by a business and are required to produce other goods and services, e.g., tools, computers
• Services can be divided into Consumer Services and Business Services
• Consumer Services include hairdressing, personal banking services, doctor's consultation
• Business Services include banking facilities, insurance facilities, transport of goods and employees
• Durable Goods, Semi-Durable Goods, and Non-Durable Goods are categories of goods
• Durable Goods last over an extended period, Semi-Durable Goods last moderately long, Non-Durable Goods are consumed quickly
• Factors of Production: Land, Labor, Capital, Entrepreneurship are essential for producing goods and services
• Factors of Production receive payment: Land - rent, Labor - wages, Capital - interest, Entrepreneurship - profit
• Workers categorized as Professionals & Managers, Skilled Workers, Semi-Skilled Workers, Unskilled Workers
• Primary Production involves obtaining food and raw materials from the earth
• Secondary Production involves manufacturing finished goods using materials from the primary industry
• Tertiary Production involves services that help in the exchange and distribution of goods
• Identify into Primary Production, Secondary Production, and Tertiary Production: Education, Car Making, Banking