topic 2

• Business is any activity which uses the factors of production to provide goods/services to satisfy people’s wants
• Reasons for business activity:

  • Majority exist to make a profit
  • Others are concerned with giving a service or good for religious, political or social reasons
• Business activity affects us by:

  • Providing goods/services we want
  • Creating jobs
  • Providing money to spend
  • Putting money into the local economy
  • Money collected from tax is used by government to provide public services like new roads, schools, hospitals
  • On the other hand, it can cause unemployment if not successful or following a change, and pollution or other hazards and stress at work
• Government controls business by determining:

  • What businesses are allowed to do
  • What help they are given in the form of grants, advice, information, and the provision of premises
  • What laws they have to obey – government enacts laws
  • Government refers to both local government (local councils) and central government (Houses of Parliament)