Learn: Business in the Real World

Welcome!Today we'll explore 'Business in the Real World.' We'll learn about the purpose of business, types of business structures, aims/objectives, stakeholders, location factors, and business plans. Let's get started!

Purpose of BusinessThe main purpose of a business is to produce goods or services. Businesses exist to fulfil opportunities, meet people’s needs, and satisfy their wants. For example, a bakery meets the need for food and satisfies the want for fresh bread.

EntrepreneurshipAn entrepreneur is someone who starts and runs their own business. Traits of entrepreneurs include being organised, taking risks, and showing determination. They are often motivated by profit, independence, or the desire to solve problems.

Types of BusinessBusinesses can be structured in different ways. Common types include:Sole trader: One person owns and controls the business.Partnership: Two or more people share ownership and responsibility.Ltd (Private Limited Company): Owned by shareholders with limited liability.Plc (Public Limited Company): Shares are sold to the public and traded on the stock exchange.Not-for-profit: Focused on social or environmental goals rather than profit.

Aims and ObjectivesBusinesses set aims and objectives to guide their actions. Common aims include making a profit, surviving in the market, growing, increasing market share, satisfying customers, and acting ethically. For example, a café might aim to grow by opening new branches.

StakeholdersStakeholders are groups or individuals affected by a business. Key stakeholders include owners, employees, customers, suppliers, and the local community. They often have different aims, which can lead to conflicts. For example, owners may want higher profits, while employees may want higher wages.

Location FactorsChoosing a location for a business depends on factors like proximity to customers, available labour, access to raw materials, competition, and costs. For example, a factory might locate near suppliers to reduce transport costs.

Business PlansA business plan outlines the goals of a business and how they will be achieved. It includes sections like financial forecasts, marketing plans, and operational strategies. A strong plan helps secure loans and guides decision-making.

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