Learn: Business in the Real World

Welcome!Today, we'll be learning about 'Business in the Real World' from the AQA GCSE Business syllabus. This topic covers the purpose of businesses, different types of businesses, and their aims and objectives. Let's get started!

What Is the Purpose of Business?The purpose of a business is to provide goods (physical products like clothes or food) or services (actions like haircuts or transport). Businesses aim to fulfil customer needs (essential things like food or housing) and wants (luxuries or non-essential items). This helps improve people's lives and meet demand.

EntrepreneurshipAn entrepreneur is someone who sets up and runs a business. Entrepreneurs are often risk-takers, willing to take financial and personal risks. They are usually organised, creative, and determined. Their motivations can include making a profit, gaining independence, or following a passion.

Types of BusinessesThere are different types of businesses, each with its own structure and characteristics. The main types include:Sole Trader: Owned and run by one person, with unlimited liability.Partnership: Owned by two or more people, sharing profits and decision-making.Private Limited Company (Ltd): Owned by shareholders, with limited liability.Public Limited Company (Plc): Shares are sold on the stock exchange, with limited liability.Not-for-Profit: Focused on social or community objectives rather than profit-making.

Business Aims and ObjectivesBusinesses set aims (long-term goals) and objectives (specific targets to achieve aims). Common aims and objectives include:Profit: Making more money than they spend.Survival: Staying open and operating, especially important for new businesses.Growth: Expanding in size, revenue, or market presence.Market Share: Increasing their percentage of sales in the market.Customer Satisfaction: Ensuring customers are happy with their products or services.Ethics: Acting responsibly and sustainably.

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

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