Learn: Business in the Real World

Welcome!Today we'll learn about Business in the Real World. This includes understanding what businesses do, their purpose, types, and aims. Let's explore step by step!

What is the Purpose of Business?The purpose of a business is to provide goods (physical items like food or clothes) or services (activities like haircuts or teaching). Businesses aim to meet people's needs (essential items) and wants (non-essential items).

EntrepreneurshipAn entrepreneur is someone who starts and runs a business. They need traits like being organised, risk-taking, and creative. Entrepreneurs are motivated by goals such as making a profit or gaining independence.

Types of BusinessBusinesses can be structured differently:Sole trader: One person owns and controls the business. They have unlimited liability.Partnership: Two or more people share ownership and responsibility, with unlimited liability.Private limited company (Ltd): Shares are privately owned, and liability is limited.Public limited company (Plc): Shares are sold publicly on the stock market, with limited liability.Not-for-profit: Focuses on social or environmental goals instead of profit.

Business Aims and ObjectivesBusinesses set aims and objectives to guide their actions. Common aims include:Profit: Making money after costs.Survival: Continuing to operate in tough times.Growth: Expanding the business.Market share: Increasing the percentage of sales in the market.Customer satisfaction: Keeping customers happy.Ethics: Acting responsibly towards the environment and society.

StakeholdersStakeholders are people or groups who are interested in or affected by a business. Examples include owners, employees, customers, suppliers, and the local community. They often have different aims which can lead to conflicts.

Location FactorsWhen choosing where to operate, businesses consider:Proximity to market: Being near customers reduces delivery costs and increases convenience.Access to labour: Skilled workers are needed.Availability of raw materials: Essential for production.Competition: Too much competition can harm profits.Cost: Rent and transport costs influence location choice.

Review Time!Great work! You've learned about key aspects of business in the real world, including purpose, entrepreneurship, business types, aims, stakeholders, and location factors. Let's test your understanding with a few questions!