Learn: What a business is and why businesses exist

Welcome!Hello! Today, we're exploring what a business is and why businesses exist. We'll look at the purpose of businesses, what they do, and why they are important. Let's get started!

What is a Business?A business is an organisation that produces goods or provides services to meet the needs and wants of consumers. Goods are physical products, like cars or bread, while services are activities provided to people, such as haircuts or education.

Why Do Businesses Exist?Businesses exist to solve problems, create opportunities, and provide goods or services that people need or want. For example, a bakery exists to make food that customers desire, while a car repair shop exists to fix vehicles.

Types of BusinessesBusinesses can be structured in different ways. Common types include:Sole traders: A single person owns and runs the business, making all decisions and keeping the profits.Partnerships: Two or more people share the responsibilities, profits, and risks of the business.Private limited companies (Ltd): Owned by shareholders, but shares aren't sold to the public.Public limited companies (Plc): Shares are traded publicly on the stock exchange.Not-for-profit organisations: These aim to benefit society rather than make a profit, like charities.

EntrepreneurshipAn entrepreneur is someone who starts, runs, and takes risks to create and grow a business. Entrepreneurs are often motivated by profit, independence, or the desire to solve problems and create opportunities. They need to be organised, creative, and willing to take risks.

Business ObjectivesBusinesses set clear objectives to stay focused and measure success. Common objectives include making profit, surviving in the market, growing to reach more customers, increasing market share, achieving customer satisfaction, and acting ethically.

Review Time!Great work! You've learned about what businesses are, why they exist, the types of businesses, entrepreneurship, and business objectives. Let's review what you've learned with some questions.