Learn: Business in the Real World

Welcome!Today we'll explore 'Business in the Real World'. This is a key part of the AQA GCSE Business 8132 curriculum that introduces you to the basics of how businesses operate and why they exist. Let's get started!

What is the Purpose of Business?The main purpose of a business is to produce goods or services that meet people's needs and wants. Businesses exist to provide opportunities for entrepreneurs and to make profits. Some businesses also aim to benefit society, such as charities or social enterprises.

EntrepreneurshipAn entrepreneur is someone who starts and runs their own business. Entrepreneurs are risk-takers who are often creative, determined, and organised. They might be motivated by factors such as making a profit, achieving independence, or pursuing a passion.

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), and public limited companies (Plc). Each type has different structures, levels of control, and liability.

Business Aims and ObjectivesBusinesses set goals to guide their operations. Common aims and objectives include making a profit, surviving, growth, increasing market share, customer satisfaction, and ethical behaviour. These goals depend on the type and size of the business.

Stakeholders in a BusinessStakeholders are individuals or groups affected by the business's activities. Key stakeholders include owners, employees, customers, suppliers, and the local community. Different stakeholders often have conflicting interests, which businesses must manage carefully.

Location FactorsThe location of a business is important for its success. Key factors include access to the market (customers), availability of labour (workers), proximity to raw materials, competition, and cost of premises. For example, a shop might choose a busy high street for easy access to customers.

Business PlansA business plan is a document that outlines the goals of a business and how it plans to achieve them. It includes sections such as market research, financial forecasts, and business objectives. A strong business plan helps attract investors and reduces risks.

Review Time!Great work! You've learned about the key aspects of 'Business in the Real World'. Now let's test your understanding with a few questions.