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Summary Business life
- Course
- Business Studies
- Institution
- 10th Grade
Business studies grade 10 term 1
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Grade 10 Business — Exam Notes Andrew AboshChapter One: Economic Basics
Formula for Profit:
Profit (or loss) = Revenue - (Costs + Expenses)
Supply and Demand:
The Law of Demand states that the relationship between prices and consumers’
quantity demanded is inversely (or oppositely) correlated:
• When prices decrease, consumers buy more and quantity demanded goes up
• When prices increase, consumers buy less and quantity demanded goes down
The Law of Supply states that the relationship between prices and consumers’ quantity
demanded is positively correlated:
• When prices decrease, businesses’ ability to make profit decreases and so quantity
supplied goes down
• When prices increase, businesses’ ability to make profit increases and so quantity
supplied goes up
Goods vs. Services:
• Goods are tangible items. They can be something that can be used and consumed
once, or are items that can be used again and again
• Services are contracts that exist where the consumer buys the time, expertise,
equipment or know-how from a service provider
Needs vs. Wants:
• A want is something that you desire or wish for, it’s not needed to survive.
• A need is something that you require in order to live a healthy life.
Competition:
In the past, businesses controlled what, when, and the amount of products and services
available to customers. With increased competition, consumers want to buy something
that meets their personal needs and wants. This is competition.
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, Grade 10 Business — Exam Notes Andrew Abosh
Decision Making Model:
Chapter Two: Types of Businesses
Forms of Ownership:
1. Sole Proprietorship:
• A business owned by one person who is known as the proprietor
• Funds come from owner’s savings, friends, family, or a bank loan
• Business income is declared on the owner’s personal income tax rather than filling
a separate business tax form
• Owner receives all profits and is responsible for any losses (unlimited liability)
• Cheapest and easiest
2. Partnership:
• A partnership is a business in which two or more individuals share the costs and
responsibilities of owning and operating it
• Terms are recorded in the partnership agreement
• Two types of partnerships:
• General Partnership: All partners have unlimited liability for the firm’s debts
• Limited Partnership: The partners are only responsible for the funds they both
invested in the initial business. This is called limited liability
• The working relationship between partners can be an advantage is they have
complimentary talents and share in decision making
3. Corporation:
• A corporation is a business granted legal status with rights, privileges, and liabilities
that are distinct from those of the people who work for the business.
• Corporations can be small (one-person) or large (multinational) which conducts
business in several different countries.
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