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AQA A Level Business Year 1 (AS) Companion.

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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. [Show More]

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