Learn: Business in the Real World

Welcome!Today, we'll explore Business in the Real World. This is an important topic that helps us understand what businesses do, why they exist, and how they operate. Let's dive in!

What is the Purpose of Business?The main purpose of a business is to produce goods or services to satisfy customers' needs (essential items like food) and wants (luxury items like designer clothes). Businesses also aim to make profits or meet other goals like helping the community.

EntrepreneurshipAn entrepreneur is someone who starts and runs their own business. Entrepreneurs often take risks, are highly organised, and aim to achieve goals such as earning profits or gaining independence.

Types of BusinessesBusinesses can be owned and structured in different ways. Common types include:Sole traders – Run by one person, have unlimited liability, and keep all profits.Partnerships – Run by two or more people, share risks and profits.Private limited companies (Ltd) – Owned by shareholders, limited liability applies.Public limited companies (Plc) – Shares can be sold publicly, limited liability applies.Not-for-profit organisations – Aim to benefit society rather than make profits.

Business Aims and ObjectivesBusinesses set different aims (long-term goals) and objectives (specific steps to achieve aims). Common aims include making profits, surviving in the market, growing, gaining market share, satisfying customers, and acting ethically.

StakeholdersStakeholders are people or groups with an interest in a business. Key stakeholders include owners (invested in profit), employees (concerned about pay and job security), and customers (focused on quality and price). Stakeholder aims can sometimes conflict.

Review Time!Great work! We've covered the purpose of business, entrepreneurship, business types, aims, and stakeholders. Let's test your understanding further.