What
You
Need
to
Know
What
is
a
business?
Why
businesses
exist
What
businesses
do
The
role
of
entrepreneurs
Main
types
of
business
What
is
...
What
You
Need
to
Know
What
is
a
business?
Why
businesses
exist
What
businesses
do
The
role
of
entrepreneurs
Main
types
of
business
What
is
a
Business?
A
business
is
an
organisation
that
exists
to
provide
goods and
services on
a
commercial
basis
to
customers.
• Goods are
physical
or
tangible
products:
e.g.
consumer
electronics,
industrial
components,
cars
• Services are
intangible
products:
e.g.
insurance,
dental
services,
cleaning
Customers
can
be
individuals
(buying
on
their
own
behalf
or
for
households),
businesses
or other
organisations.
Why
Businesses
Exist
Businesses
exist
because
they
are
formed
by
entrepreneurs
and
are
subsequently
developed
if
they
manage
to
get
beyond
the
survival
stage.
Most
businesses
exist
in
order
to
earn
a
return
for
the
business
owners,
and
the
potential
for
profit
is
a
key
motive
for
entrepreneurial
activity.
However,
there
are
other
potential
business
objectives,
which
are
explored
further
during
your
studies.
Businesses
play
a
key
role in
wider
society.
In
particular
they:
• Create
and
sustain
employment
&
develop
the
skills
of
people
• Drive
innovation
through
research
&
development
(R&D)
and
new
products
• Contribute
to
the
infrastructure
of
the
country
• Pay
taxes
on
profits
earned
&
collect taxes
on
behalf
of
government
• Create
wealth
by
providing
returns
on
investment
What
Businesses
Do
– the
Transformation
Process
In
different
ways,
all
businesses
take
resource
inputs
and
transform
them
into
goods
and
services.
This
is
known
as
the
transformation
process.
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