Learn: Business in the Real World

Welcome!Today we'll explore Business in the Real World, a key topic in AQA GCSE Business. You'll learn about the purpose of business, business types, stakeholders, and more. Let's get started!

What is the purpose of business?A business exists to produce goods (physical items, like clothes) or services (non-physical activities, like haircuts). It aims to meet people's needs (essential things like food) or wants (luxuries like holidays). This helps businesses create value and contribute to society.

EntrepreneurshipAn entrepreneur is someone who starts and runs a business. They often have traits like being organised, creative, and willing to take risks. Entrepreneurs might be motivated by earning profit, gaining independence, or solving problems.

Types of BusinessesBusinesses can take different forms:Sole trader – a single owner with full control and unlimited liability.Partnership – two or more owners sharing control and profits.Private Limited Company (Ltd) – owned by shareholders, limited liability.Public Limited Company (Plc) – shares sold publicly, limited liability.Not-for-profit – focuses on social or environmental goals rather than profit.

Business Aims and ObjectivesBusinesses set aims (long-term goals) and objectives (specific, measurable steps to reach those goals). Common aims include profit, survival, growth, market share, customer satisfaction, and acting ethically.

StakeholdersStakeholders are individuals or groups affected by a business's actions. Examples include owners, employees, customers, and suppliers. Each stakeholder has different interests, which can sometimes lead to conflicts.

Factors Affecting Business LocationChoosing a good location is essential for business success. Key factors include:Market – proximity to customers.Labour – availability of skilled workers.Raw materials – ease of access to supplies.Competition – presence of rivals.Cost – affordability of premises.

Review Time!Great work! You've learned about business purposes, types, aims, stakeholders, and location factors. Now let’s test your understanding with a few questions.