Learn: Business in the Real World

Welcome!Today we'll explore 'Business in the Real World' from AQA GCSE Business 8132. We'll look at what businesses are, why they exist, and how they operate. Let's get started and learn together!

Purpose of BusinessThe main purpose of a business is to produce goods or services to meet people's needs and wants. Needs are things we cannot live without, such as food, water, and shelter. Wants are things we desire but can live without, such as entertainment or luxury items.

EntrepreneurshipAn entrepreneur is someone who starts a business. Entrepreneurs are often willing to take risks, are organised, and are motivated to succeed. Their motivations may include earning profit, gaining independence, or pursuing a passion.

Types of BusinessThere are different types of businesses: sole traders (one owner), partnerships (two or more owners), Ltd (private limited companies), Plc (public limited companies), and not-for-profit organisations (e.g., charities). Each has a unique structure, liability, and way of raising finance.

Aims and ObjectivesBusinesses set aims and objectives to guide their operations. Common aims include profit (earning money), survival (staying open), growth (expanding), market share (capturing more customers), customer satisfaction (meeting customer needs), and ethics (acting responsibly).

StakeholdersStakeholders are groups or individuals who have an interest in a business. Key stakeholders include owners, employees, customers, suppliers, and local communities. Their aims may conflict, such as owners wanting profit while employees want higher wages.

Location FactorsBusinesses choose locations based on factors like access to markets (customers), availability of labour (staff), proximity to raw materials, competition, and costs (rent, utilities). For example, a shop might locate near a busy high street to attract customers.

Review Time!Great work! You've learned about the purpose of business, entrepreneurship, types of businesses, aims, stakeholders, and location factors. Now let's test your understanding with some final questions.