WEEK/TERM: THIRD TERM/WEEK 1
CLASS: JSS 1
SUBJECT: Business studies
REFERENCE: Meybik New Basic Business Studies
Production is the creation of goods and services which satisfy human wants. It is not normally a single activity. It is often made up of series of activities aimed at finally coming out with what is needed by people, organization or institutions. Production is not complete until what is produced gets to the final consumer.
Notes for the pupils:
MEANING OF PRODUCTION
Production is defined as the creation of goods and services which satisfy human wants. It is any activity which satisfies a human want for which people are prepared to pay either by purchasing the goods or services. Example, a farmer, a barber, a teacher, an actor and a musician are all producers of goods and services.
TYPES OF PRODUCTION
There are three main types of production. They are as follows: Industrial production, commercial productions and service production.
- Industrial production: This production activity involves obtaining raw materials and converting them into finished goods.
- Commerce or commercial production: This involves all those activities in the distribution and exchange of goods and services such as advertising, banking, communication, insurance, transportation, warehousing etc.
- Services production: A service is any activity or benefit that one party can offer to another that is intangible, e.g hair cut, hair making, insurance and provision of public schools, water, health care etc by the government.
FACTORS OF PRODUCTION
There are four basic factors of production. They are as follows:
Land is defined as a free gift of nature. It includes all the resources provided by nature such as rivers, minerals, Forests and mountains. The reward for land is rent.
Labour is all forms of human effort put into production of goods and services. The reward for labour is wages and salaries
Capital is man-made wealth or goods used to produce other goods and series e.g money, machines, factories and tools. The reward for capital is interest.
Entrepreneur is a person who initiates a business idea or plan. He/she takes business risks and the aim of going into business is to make profit – the reward for entrepreneur is profit.
- What is production?
- Name types of production.
- Name four factors of production.
- The reward for capital is……………….