Students learn about: Role of business Business Studies Prelim Notes Topic 1: Nature of Business ○ the nature of a business – ​ producing goods and services – ​profit, employment, incomes, choice, innovation, entrepreneurship and risk, wealth and quality of life What is a business? A business is an organisation that attempts to satisfy the needs and wants of the community by providing goods and/ or services. Businesses play an important part in satisfying our needs and wants as consumers and help maintain and improve our standard of living. Definition: The organised effort of individuals to produce and sell, for a profit, the products (goods and services) that satisfy individuals’ needs and wants. Why are businesses important for the Australian economy? There would be no jobs if we didn’t have businesses ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ Provide goods and services Provide stability Tourism Creates value Provides income Pays tax Encourages competition Goods and Services Goods are ​tangible​ objects that satisfy people's needs and wants. Servicesareactivitiesprovidedbyotherpeoplewhicharen​ on-tangible​. Goods + Services are the outputs offered by businesses to satisfy the demands of consumer & industrial markets. Inputs and Outputs ○ Inputs are the resources (such as labour, finance and equipment) that a firm uses to create Outputs. ○ Outputs are the goods and/or services produced using the various inputs. Production ○ Activities taken by a business that combine resources to create products. ○ Finished product → One that is ready for consumers to buy.