Learn: What a Business Is and Why Businesses Exist

Welcome!Welcome to your personalised lesson on businesses and why they exist. By the end of this session, you'll understand the purpose of businesses and their key features. Let's get started!

What Is a Business?A business is an organisation that provides goods (physical items) or services (things you can't touch, like haircuts). Businesses exist to meet the needs and wants of customers. They aim to make a profit or achieve other goals like helping the community.

Why Do Businesses Exist?Businesses exist to meet customer needs (essential items like food, water) and wants (non-essential items like luxury goods). They also create opportunities for entrepreneurs to make profits, achieve independence, or contribute to society.

Types of BusinessesThere are many types of businesses. The main ones are sole traders (run by one person), partnerships (two or more people), limited companies (Ltd or Plc), and not-for-profits (focused on helping others rather than making money). Each type has different structures, liabilities, and goals.

Business Goals and ObjectivesBusinesses set aims and objectives to guide their operations. Common objectives include making a profit, surviving, growing, increasing market share, satisfying customers, and acting ethically.

StakeholdersA stakeholder is anyone interested in or 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.

Review Time!Great work! You've learned about what businesses are, why they exist, their types, goals, and stakeholders. Let's test your understanding of these concepts.