A business is an organisation that provides goods or services to customers. Most businesses aim to make a profit.

Why might a business be set up to distribute products?

Some businesses exist to move products from producers to customers. Wholesalers and delivery firms are examples.

What is a business opportunity?

A business opportunity is a gap in the market that a new business could fill. An example is a product customers want but cannot easily buy.

Why might a business be set up to benefit others?

Some businesses are set up mainly to help people or the community rather than to make a profit. Charities and social enterprises are examples.

AQA GCSE Business 8132

Business in the Real World

Topic overview What a business is and why people start one Goods, services, needs, wants and factors of production Business sectors, entrepreneurs and a changing business environment Sole traders, partnerships, limited companies and not-for-profit organisations Business aims and objectives Why business objectives differ and change Stakeholders and their influence on businesses Factors affecting business location Business planning and basic financial terms Expanding a business and economies of scale

Influences on Business

Topic overview E-commerce and digital communication Ethics, the environment and sustainability Interest rates, employment and consumer spending Globalisation and exchange rates Employment, health and safety and consumer law Competition, risk and uncertainty

Business Operations

Topic overview Job, flow and lean production Managing stock: just in time and just in case Suppliers, procurement, logistics and supply chains Quality control, quality assurance and TQM Customer service and the sales process

Human Resources

Topic overview Organisational structures, span of control and delegation Recruitment, selection and contracts of employment Financial and non-financial methods of motivation Induction, on-the-job and off-the-job training

Marketing

Topic overview Identifying and satisfying customer needs Market segmentation Purpose of market research and primary and secondary research Market research methods and interpreting findings Pricing methods and factors affecting price New products, USP, brand image and the Boston Matrix Product life cycle and extension strategies Promotional methods and the promotional mix Channels of distribution, e-commerce and m-commerce The integrated marketing mix

Finance

Topic overview Sources of finance Cash flow and cash flow forecasts Financial calculations and average rate of return Break-even charts and margin of safety Income statements and statements of financial position Profit margins and judging financial performance

Business in the Real World

What a business is and why people start one

3 things to know
Both papers

Overview

What a business is for, the reasons people start one, social enterprises and charities, and the four functions of operations, human resources, marketing and finance and why they must work together.

What you need to know

Answer each one before you reveal it.

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Key term

What is a business?

Key term

What is the main purpose of a business?

Key term

Give three reasons why someone might start a business.

Questions from this subtopic

Each one with the model answer underneath.

1
What is a business?
Model answer
A business is an organisation that provides goods or services to customers. Most businesses aim to make a profit.
2
What is the main purpose of a business?
Model answer
A business exists to meet customers' needs and wants by providing goods or services. Most businesses do this to earn a profit for their owners.
3
Give three reasons why someone might start a business.
Model answer
A person might start a business to produce goods or supply a service. Other reasons are to fulfil a business opportunity or to provide something that benefits others.
4
Why might a business be set up to distribute products?
Model answer
Some businesses exist to move products from producers to customers. Wholesalers and delivery firms are examples.
5
What is a business opportunity?
Model answer
A business opportunity is a gap in the market that a new business could fill. An example is a product customers want but cannot easily buy.
6
Why might a business be set up to benefit others?
Model answer
Some businesses are set up mainly to help people or the community rather than to make a profit. Charities and social enterprises are examples.

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Business in the Real World

Influences on Business

Business Operations

Human Resources

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The pays a fee and a share of revenue.

franchiseefranchisorshareholder

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Rapid timed gap-fills on the terms and numbers you need to recall without thinking.

AThe business pays more interest on the money it owes.

BHigher interest charges raise costs and reduce profit.

CThe business will pay £1,000 more interest each year.

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Wage means pay based on the number of hours worked.

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