Learn: Business in the Real World

Welcome!Today we'll explore the exciting topic of Business in the Real World. We'll cover key concepts like the purpose of businesses, types of businesses, stakeholders, and more. Let's dive in!

What is the Purpose of Business?The purpose of a business is to produce goods or provide services that meet the needs and wants of customers. Businesses aim to solve problems, create opportunities, and generate income by offering products or services people value.

EntrepreneurshipAn entrepreneur is someone who sets up a business and takes on financial risks in the hope of making a profit. Entrepreneurs often have traits like being creative, organised, and willing to take risks. They are motivated by factors like independence, financial rewards, or wanting to solve a problem.

Types of BusinessesThere are different types of businesses, including sole traders (owned by one person), partnerships (owned by two or more people), private limited companies (Ltd), public limited companies (Plc), and not-for-profit organisations (e.g., charities). Each has different structures, levels of liability, and ways of raising finance.

Business Aims and ObjectivesBusinesses set aims and objectives to guide their goals. Common aims include making a profit, surviving in difficult conditions, growing the business, increasing market share, satisfying customers, and achieving ethical practices. These aims help businesses stay focused and measure their success.

StakeholdersStakeholders are individuals or groups with an interest in a business. Key stakeholders include owners, employees, customers, suppliers, and the local community. They may have different aims, such as profit, job security, fair wages, or environmental protection, which can sometimes lead to conflicts.

Location FactorsChoosing the right location is crucial for a business to succeed. Location factors include proximity to the market, availability of labour, access to raw materials, and the level of competition. Costs are also important, as businesses need to balance expenses with potential profits.

Review Time!Great work! You've learned about the purpose of businesses, types of businesses, aims and objectives, stakeholders, and location factors. Let's test your understanding with a few questions.