Learn: What a Business Is and Why Businesses Exist

Welcome!Today, we're learning about what a business is and why businesses exist. This is an exciting topic that helps us understand how businesses serve people and society.

What is a Business?A business is an organisation that produces goods or services to meet the needs and wants of people. Businesses exist to provide value, either by solving problems or offering products people desire.

Goods vs ServicesGoods are physical items like clothes or food that can be touched and owned. Services are activities or experiences, such as haircuts or online streaming, that people pay for but can't physically hold.

Why Do Businesses Exist?Businesses exist to meet needs (essential items like food and housing) and wants (luxuries like designer clothes or entertainment). They create opportunities for entrepreneurs and provide goods and services to improve lives.

Entrepreneurs and Business CreationAn entrepreneur is someone who starts a business. They are often risk-takers, creative, and organised. Entrepreneurs may start businesses to earn profit, gain independence, or pursue their passions.

Types of BusinessesThere are different types of businesses, including sole traders, partnerships, private limited companies (Ltd), public limited companies (Plc), and not-for-profit organisations. Each has a unique structure and purpose.

Business ObjectivesBusinesses aim to achieve goals such as profit, growth, survival, market share, customer satisfaction, and ethical practices. These objectives guide their decisions and strategies.

Review Time!Great work! You've learned about what a business is, why businesses exist, business types, and business objectives. Let's test your understanding with a few questions.