Economics is science of how individuals and societies deal with the fact that their wants ( ends ) are

greater than the limited recources available to satisfy those wants. Industrial sectors ? Primary sector ( it is concerned with the production and extraction of row materials ) -Secundary sector ( it processes the output of the primary sector) -Terciary sector ( it relates to the provision of services and is the fastes growing sector in many nature ec. ) Different inputs/ resources that can be used in production process ? Land, building, machinery, materials, capital Basic economics concepts : The relationship between the three main parties in an economy ? Government manages the economy Households- buy goods and services ( provide factors of production and demand goods and services, pay taxes but also receive benefits from the government ) Business produce goods and services ( sell goods and services and pay for services of factors of production, pay taxes and become subsidies from the government )

What business economics is .The study of financial issues and challenges faced by corporation. ( Economic sciende that deals with running a business in modern company, the efficiency of running a business, e.g. the efficiency and effectiveness in making a profit). How business economics differs from economics ? Business ec. Specifically seeks to investigate how and why business behave as they do, and what implications of their actions are for the industry in which they operate.

Types of business organisations ? Limited liability companies ( flexible form of enterprise that blends elements of partnership and corporate structure ) -Sole trader ( a type of business entity that is owned by one individual and in which there is no legal distinction between the owner and the business. -The partnership ( a business joinlly owned by two or more people, sharing their profits and liabilities ).

What production is ? Production is organized activity of converting raw materials into finished product What productivity is ? Productivity can be defined as human effort to produce more nd more with less and less inputs of resources so that the product can be purchased by a large number of people at affordable price. Transformed resources are resources that are treated, converted and transformed in the process. Muxture of the : materials, information, customers. Support functions which enable the core functions to operate effectively? The accounting and finance function = which provides the information to help econonomic decision making and manages the financial resources of the organization. -The human resources function = which recruits and develop the organizations staff as well as looking after their velfare. What plant layout is? It is defined as the most effective physical arrangement of machinces, processing equipment and service departments to have the best coordination and efficiency of man, machine and material in a plant.

Difference between production and productivity ? Production is and organised activity of transforming raw materials into finished products which have higher value. Production of any commodity or service is the volume of output irrespective to the quantity of resources employed to achieve the level of output, but productivity is considered as a measure of performance of the economy as a whole.

The core functions of any organization? -The marketing(including sales) function=responsible for communicating the organizations products and services to its market in order to generate customers request for service. - The product/service development function responsible for creating new and modified products and services in order to generate the future costumer req. for services. - The operations function responsible for fulfilling customers request for service throughout the production and delivery of prod. and services

Types of business relationship ? Contacts ( are often non- equity agreements specifying the cooperative contributions and powers of easch partner. Partnership ( sometimes refered to as alliances, may be contractual or informal). Strategic alliances ( sometimes also reffered to as a global alliances, are voluntary arrangements between firms involving exchange, sharing. Partnering is concerned with developing closed relationship between the partners in and environment of openness and trust. Joint ventures ( JVS) are one form of alliance and involve the partners creating a nrw, separate body or subsidiary to exploit a particular opport. Location of a plant or an organization as a two step decision ? First one has to select a region, and second a choice of a site has to be made within the region. 1 st step depends on the plants long term strategies like technological, marketing, resource mobilization, financial strategies. However, the choice of a site within a region can be decided by comparing the relative avialab. and cost of required recourses like power, transport, labor, water, raw mat.

Cost classification by function ? -Production or manufacturing costs. These are costs associated with the factory. -Administration costs. These are costs associated with general office departments. -Marketing, or selling and distribution costs. Theseare costs associated with sales, marketing, warehousing and transport departments. Transforming resources are reasources that act upon the transformed resources. Facilities ( buildings, equipment, plant and process tec. of the operation ) Staff (people who mantain, operate, plan and manage the operation)

Cost classification by element ? Materials ( purchased for production or non-prod. activities-raw materials, cleaning materials, components, stationery. Labour costs - all staff costs relating to employees on the payroll of the organisation. Expenses - all other costs which are not materials or labour. This includes all bought in services, for example,rent, telephone, subcontractors and costs such as thedepreciation of equipment.