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Think of a pair of shoes which is selling for £100. If the cost of the materials, employees, marketing and all other inputs used in making one set of sunglasses is just £20, then £80 worth of value has been added by the firm during production.

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When the selling price of an item produced is higher than the cost of all the resources used to make it.

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Is the business activity of using resources to make goods and services.

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Production

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Sometimes the customer and consumer are different people - for example, parents buy a pen for their child to use at school.

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Suppliers

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It involves converting raw materials into components.

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Provides customers with finished goods or services.

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This refers to the commercial services that support the production and distribution process.

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This is the manufacturing and assembly process.

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This involves acquiring raw materials

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Tertiary

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Secondary

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Primary

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Sectors

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transform

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Are things such as raw materials, equipment, buildings and staff.

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Every bussines adds a value

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These inputs are transformed into outputs that are called products.

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Outputs

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Inputs

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Adding Value

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Which employs thousand of people all over the world

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large companies

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owen and run by one self-person

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small films

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Types of bussines

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are created based on the

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Is a person o business that provides a product o service to another entity

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Is a new firm operating in a market for the first time.

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business start- up

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Are the wants and desires of buyers.

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Costumers need

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Are non-physical items such as nail salon.

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are physical products such as bicycle or play station.

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Services

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Goods

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Is any organisation that makes goods or provides services that's why they exist.