2nd PUC business studies textbook pdf download

It results in surplus production of goods and services.No one has the ability to provide all that he/she requiresД«) Indirect production Production of goods and services for sale Characteristics of Indirect Production.

Does not encourage invention and innovation.

Goods and services are of low quality and quantity.

Types of production Direct and Indirect Production Direct production (subsistence production) Is type of production from ones own personal consumption Characteristics of Direct Production Example, ownership of bread may be transferred from a canteen owner to a consumer when the customer buys it. Example, transporting books from a bookshop to the school Possessive Utility-this refers to the transfer of ownership of good and services from one person to another it maybe done through trade. Place UtilityвЂ“ this is bridging the geographical gap between the producer of commodity and its consumers through transportation. Example, storing food stuff in the school store during the holiday to use when the school opens. sugarcane may be converted into sugar Time Utility-this is created when a good is stored until it is appropriate time to use it. Types of utilityДЇorm utility вЂ“this is changing the form of a commodity by converting raw materials to finished goods. Utility_-is the ability of a good or services to satisfy human wants. ItвЂ™s the creation of goods or provision of services to satisfy human wants It involves activities of transforming of materials into finished goods, transportation and storage Utility The real cost of satisfying any want is the alternative that has to be foregone in order to do soД¬HAPTER FOUR OF FORM 1 BUSINESS STUDIES NOTES PRODUCTION

Opportunity cost is the value of the best foregone alternative.

2nd PUC business studies textbook pdf download