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Economic and management sciences

Grade 7

Economic principles

Module 3

Making a profit

Activity 1:

To determine whether a dealer is making a profit on the product he sells

[lo 3.1]

A particular trader sells bananas on the pavement. He calculates his expenses carefully and ensures that the following costs are covered:

  • transport costs;
  • helper’s salary;
  • cost of packaging.

All these costs are added together to calculate the price of a banana accordingly. Then he adds a reasonable profit for himself and sells his bananas.

  • Can this trader be sure of making a profit? Provide reasons for your answer.

When you hope to run a profitable business over a period of time, it is very important to take care of particular aspects.

  • Treat all your clients with respect. Without clients, you cannot run a business.
  • Find out which products and services are required and where they are required.
  • Do not hope to become wealthy overnight. Your clients must be able to afford your products/services.
  • Ensure that your products are displayed attractively. Clients need to feel comfortable in their buying environment.

1. Competition

All sellers try to make money to take care of themselves and their families.

It therefore becomes important for any seller to compete with other sellers to persuade the consumer to buy from him/her rather than from the competitor. The seller has to search for new and better methods of producing the product offered to be able to sell it at a lower price / at a better profit. Any seller is sure to make many mistakes, and many businesses do fail.

2. The consumer

The businessman continually has to ask himself:

“Who will buy my products?”

This refers to his MARKET. He has to make a decision about the market he is going to aim at in advance.

Remember:

  • Without consumers (the clients), the business cannot exist.
  • You must meet the needs of the consumers.
  • Listen to their complaints and to what they have to say.
  • Always be friendly.
  • Always provide good service.
  • Offer the best quality at the best price.
  • Always offer service of the same quality.
  • Be sensitive to the needs of the consumer and adjust the product accordingly.
  • Be creative and make adjustments to products to satisfy particular consumers.
  • Get to know customers and build up a personal relationship with them.

Activity 2:

To establish the demand for a product that you want to sell

[lo 4.1, 4.2]

Babies Boys2 – 6 Girls2 – 6 Boys7 – 12 Girls7 – 12 Teenage boys Teenage girls Men Women
Soft toys
Dolls
Puzzles
Remote-controlled toys
Model cars&aeroplanes
Balls
Computer games
Bicycles
Tricycles

If you now determine who the particular clients from your surroundings are that would buy from you, you will have an idea of what kind of stock to offer.

3. Entrepreneurship

  • Definition

The word is derived from the French word “entreprendre”. “Entre” means “to enter in(to)”, while “prendre” means “to take”. From this we can deduce that an entrepreneur is someone who undertakes a particular task.

An entrepreneur is someone who has the ability to see a business opportunity, has

the courage to make use of it and the skill to manage it in a profitable manner.

  • Characteristics of the entrepreneur.
  • Prefers to work for himself.
  • Thinks in a new and original way.
  • Creates work for other people.
  • Has courage.
  • Exhibits perseverance.

Can you add to this list?

  • Why do people start their own businesses?

Discuss this question in your groups and jot down some possible reasons:

  • Could you be an entrepreneur?

Complete the following form as honestly as possible:

Characteristics YES NO
I have ideas for making money.
I have already made money with my ideas.
I should like to have my own business.
I often make plans of my own.
I am courageous.

If you have mainly said YES, you could definitely consider becoming an entrepreneur.

REMEMBER THIS!

“A business is an opportunity to serve the consumer by satisfying some of his needs.”

“A successful business is an opportunity to serve the needs of the consumer and make money at the same time.”

* * * * * * * *

SHELDON’S LAW

When you start a business, things take three times as long as you expect.

Assessment

LO 3
MANAGERIAL, CONSUMER AND FINANCIAL KNOWLEDGE AND SKILLSThe learner will be able to demonstrate knowledge and the ability to apply responsibly a range of managerial, consumer and financial skills.
We know this when the learner:
3.1 explains the role of planning, organising, leading and controlling (e.g. financial and procedural controls) in a business.
LO 4
ENTREPRENEURIAL KNOWLEDGE AND SKILLSThe learner will be able to demonstrate entrepreneurial knowledge, skills and attitudes.
We know this when the learner:
4.1 compares essential characteristics and skills needed to be entrepreneurial from two different simple case studies of practising entrepreneurs in own community;
4.2 uses idea generation techniques to make recommendations on using community resources to generate income in a responsible way.

Questions & Answers

how to know photocatalytic properties of tio2 nanoparticles...what to do now
Akash Reply
it is a goid question and i want to know the answer as well
Maciej
Do somebody tell me a best nano engineering book for beginners?
s. Reply
what is fullerene does it is used to make bukky balls
Devang Reply
are you nano engineer ?
s.
what is the Synthesis, properties,and applications of carbon nano chemistry
Abhijith Reply
Mostly, they use nano carbon for electronics and for materials to be strengthened.
Virgil
is Bucky paper clear?
CYNTHIA
so some one know about replacing silicon atom with phosphorous in semiconductors device?
s. Reply
Yeah, it is a pain to say the least. You basically have to heat the substarte up to around 1000 degrees celcius then pass phosphene gas over top of it, which is explosive and toxic by the way, under very low pressure.
Harper
Do you know which machine is used to that process?
s.
how to fabricate graphene ink ?
SUYASH Reply
for screen printed electrodes ?
SUYASH
What is lattice structure?
s. Reply
of graphene you mean?
Ebrahim
or in general
Ebrahim
in general
s.
Graphene has a hexagonal structure
tahir
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Cied
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Sanket Reply
what's the easiest and fastest way to the synthesize AgNP?
Damian Reply
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Cied
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abeetha Reply
I start with an easy one. carbon nanotubes woven into a long filament like a string
Porter
many many of nanotubes
Porter
what is the k.e before it land
Yasmin
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Cesar
I'm interested in nanotube
Uday
what is nanomaterials​ and their applications of sensors.
Ramkumar Reply
what is nano technology
Sravani Reply
what is system testing?
AMJAD
preparation of nanomaterial
Victor Reply
Yes, Nanotechnology has a very fast field of applications and their is always something new to do with it...
Himanshu Reply
good afternoon madam
AMJAD
what is system testing
AMJAD
what is the application of nanotechnology?
Stotaw
In this morden time nanotechnology used in many field . 1-Electronics-manufacturad IC ,RAM,MRAM,solar panel etc 2-Helth and Medical-Nanomedicine,Drug Dilivery for cancer treatment etc 3- Atomobile -MEMS, Coating on car etc. and may other field for details you can check at Google
Azam
anybody can imagine what will be happen after 100 years from now in nano tech world
Prasenjit
after 100 year this will be not nanotechnology maybe this technology name will be change . maybe aftet 100 year . we work on electron lable practically about its properties and behaviour by the different instruments
Azam
name doesn't matter , whatever it will be change... I'm taking about effect on circumstances of the microscopic world
Prasenjit
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Damian
silver nanoparticles could handle the job?
Damian
not now but maybe in future only AgNP maybe any other nanomaterials
Azam
Hello
Uday
I'm interested in Nanotube
Uday
this technology will not going on for the long time , so I'm thinking about femtotechnology 10^-15
Prasenjit
can nanotechnology change the direction of the face of the world
Prasenjit Reply
how did you get the value of 2000N.What calculations are needed to arrive at it
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Source:  OpenStax, Economic and management sciences grade 7. OpenStax CNX. Sep 10, 2009 Download for free at http://cnx.org/content/col11025/1.1
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