Learn: Business in the Real World

Welcome!Today we’ll learn about Business in the Real World. This topic introduces the purpose of business, types of businesses, and important concepts like business aims, stakeholders, and more.

What is the Purpose of Business?The main purpose of a business is to provide goods (physical items like food or clothing) and services (actions like haircuts or car repairs). Businesses aim to meet the needs and wants of customers while taking advantage of opportunities in the market.

What is Entrepreneurship?An entrepreneur is someone who starts and manages a business. Entrepreneurs are often risk-takers, creative, and organised. They are motivated by factors like making a profit, gaining independence, or following their passion.

Types of BusinessBusinesses can be structured in different ways:Sole trader: Owned by one person, simple to set up, but has unlimited liability.Partnership: Owned by two or more people who share profits and responsibilities, but also share liability.Ltd (Private Limited Company): Owned by shareholders, limited liability, but more complex to set up.Plc (Public Limited Company): Shares are sold to the public, raising finance, but requires more regulations.Not-for-profit: Focuses on social or environmental goals rather than profit.

Business Aims and ObjectivesBusinesses set aims (long-term goals) and objectives (short-term targets). Common aims include profit, survival, growth, market share, customer satisfaction, and operating ethically.

StakeholdersStakeholders are groups or individuals affected by a business. Examples include owners, employees, customers, suppliers, and the local community. Different stakeholders might have conflicting aims.

Location FactorsBusinesses choose their location based on factors like cost, proximity to customers, availability of labour, access to raw materials, and competition.

Review Time!Great work! You’ve learned about the purpose of business, entrepreneurship, business types, aims, stakeholders, and location factors. Let’s test your knowledge with a quick review.