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1.1 The role of business in producing goods and services

A simple way to view a manufacturing business is:

Factors of production           Making the product or service       Selling the product or service

This section looks at what business activity is, what a business does and how it does it. It examines the functions/departments of a business and the inputs used to create goods and services.

By the end of this section you should be able to:

  • Identify inputs, outputs and processes of a business
  • Describe the various business functions and explain their role
  • Explain the nature of business activity in different sectors: primary, secondary and tertiary