Learn: Business in the Real World

Welcome!Today we'll learn about Business in the Real World. This topic explains what businesses are, why they exist, and how they operate.

What is the Purpose of Business?Businesses exist to produce goods (physical products) and services (activities or benefits). They aim to fulfil opportunities, meet customer needs, and satisfy wants. Without businesses, people wouldn't have access to vital products or services like food, clothing, and healthcare.

EntrepreneurshipAn entrepreneur is someone who starts and runs a business. Entrepreneurs need traits like risk-taking (willingness to take financial or personal risks), organisation (planning and managing tasks), and decision-making. Entrepreneurs are motivated by factors like earning profits, gaining independence, and pursuing their passions.

Types of BusinessThere are different types of businesses based on their structure and ownership:Sole trader: One person owns and runs the business. They have unlimited liability (responsible for debts).Partnership: Two or more people share ownership and decision-making. They also have unlimited liability.Limited Company: Ownership is shared through shares. Liability is limited to the investment made.Not-for-profit: Focuses on helping a cause rather than earning profit.

Business Aims and ObjectivesBusinesses set aims and objectives to guide their operations. Common aims include profit (earning money after costs), survival (continuing to operate), growth (expanding the business), market share (increasing the proportion of sales in the market), and customer satisfaction (meeting customer expectations).

StakeholdersStakeholders are people or groups affected by a business. Key stakeholders include owners (want profits), employees (want fair pay and job security), customers (want good products), and local community (concerned about jobs and environmental impact). Sometimes, their aims conflict, such as profit vs fair pay.

Location FactorsBusinesses choose their location based on factors like proximity to the market, availability of labour, access to raw materials, level of competition, and cost (such as rent or transport expenses).

Review Time!Great work! You've learned about business purposes, entrepreneurship, types of businesses, aims, stakeholders, and location factors. Let's test your understanding.