Business Activity is anything that has to do with creation of products and services for the sole of making profit. An entrepreneur is anyone with a profitable business idea that translates his/her knowledge into benefits for the human populace with the sole aim of making profit.
A good entrepreneur would find out the required services and products needed by a given population before diving into it and as such production is always made after a thorough investigation and understanding of a what particular group of people needs before producing. It is not just done without proper findings as that could bring a major set back for a business or even eventual loss as the case maybe.
1- Needs
2- Wants
3- Opportunity Cost
4- Scale of preference
5- Scarcity
1- Needs are the basic amenities and requirements that is necessary for the survival of human life. The needs include: food, water, clothes, shoes, soap and so on.
2- Wants: are the requirements and things that makes life easier for humans but not necessary for survival
For instance, cellphone, bicycle, laptops, electric cars, cooking gas and so on
3- Opportunity Cost: The opportunity cost is the commodity or product left aside in order to be able to purchase another product due to limited in the available resources. It is sometimes called alternative forgone.
4- Scale of preference
A list of commodity which denotes what a buyer is willing to buy in the market in the order of preference or importance
5- Scarcity
Means limitation in the available resources to satisfy the numerous needs and wants
That's all as regards business activity atleast for now. More would be disseminated further in the subsequent posts and happy blogging.
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Video from Khan academy YouTuber