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Unit 1 - Understanding Business Activituy

Horizontales
Extraction of raw materials
Shareholders can only lose the amount they will invest
Owned by one person
Manufacturing (turning the raw materials into finished goods)
Not essential for living
No seperate legal identity
Total revenue - total costs
Verticales
Resources used to produce goods and services
The next best alternative given up
They buy shares and have part ownership of a company
A business will do this when they focus on what they are best at
The difference between the selling price and cost of producing the good.
2 or more people own this
Essential for living