The Role of Economics in the Welfare of the Community 2

By van christian

By van christian

1. Production

• Production is carried out by producers. Production is the processing of raw materials into semi-finished or finished goods.

• Production encourages the creation of jobs for the community​

2. Distribution

• Distribution is the distribution of goods and services from production sites (producers) to people who need manufactured goods (consumers).

• People who carry out distribution are called distributors​

• Equitable distribution also helps the welfare of the community in the area. They become easier to get the necessities of daily life.​

3. Consumption

• Consumption is using or utilizing of goods and services to make ends meet.

• People who carry out consumption activities are called consumers.

• Consumers must spend money to get the goods or services needed

​Business activities in the community are managed by individuals or groups

• Owned by one person.  The business owner is also a business manager

• Small scale businesses

• ​Example : small workshops, laundry, beauty salon, restaurant, grocery store.

  The advantages of individual business

  • ·  The owner can develop the business according to his own wishes. 

    ·  Benefits obtained can be enjoyed

    ·  Decision making can be done quickly

​

• The weakness of individual business

  • Limited capital and abilities. 

  • Limited business creativity. 

  • Business risks and losses are own self responsibility.

​

2. Group business

• A business that is managed and owned by more than one person

• ​The advantages of a group business

  • The capital group has more advantages because it comes from several

    The risks and losses of the business are shared. 

    More business ideas and abilities

​

• Lack of group business

  • Decision making must be in accordance with mutual agreement. 

  • Profits are shared with other owners of capital.

  • Business continuity is uncertain because it is prone to disagreements between capital owners. 

​

• Examples of group business

  • (Commanditaire Vennootschaap / CV)

    Firma (Fa)

    Perseroan Terbatas (PT)

    Koperasi

​