This mini-lesson covers AQA Topic 1 — Business in the real world: the purpose of business and enterprise, adding value, business ownership, aims and objectives, stakeholders, and business location and planning.
Work through each screen, answer the questions as you go (some are wordy, some are calculations) and collect ⭐ stars. Press Start when you're ready.
A business combines resources to provide goods or services that meet customers' needs and wants. Most start because an entrepreneur spots an opportunity and is willing to take a risk.
Enterprise & entrepreneurs: an entrepreneur organises the other factors, takes the financial risk and makes the key decisions. Rewards include profit and independence; risks include losing money.
A business adds value when the selling price is higher than the total cost of the inputs used to make the product. Added value can come from convenience, branding, quality, design or service.
Not the same as profit: profit is what remains after all costs (rent, wages, energy) are paid, not just the input cost.
AQA expects you to compare the main legal structures for a UK business:
Liability: unlimited liability puts personal assets (home, savings) at risk if the business fails. Limited liability means owners can only lose what they invested.
Aims are long-term goals; objectives are specific, measurable steps towards them. Common objectives: survival, profit, growth, market share, customer satisfaction and social/ethical aims. Good objectives are often SMART.
Stakeholders are groups affected by a business: owners, employees, customers, suppliers, community and government. Their objectives can conflict — owners wanting higher profit may clash with staff wanting higher pay.
New businesses often prioritise survival and cash; established ones may target growth or market share.
Tap a statement, then the stakeholder group it best matches.
Location affects both costs and sales. Factors include proximity to the market, labour, materials, cost of premises, competition and operating online (e-commerce widens the market and can cut premises costs).
A business plan sets out the idea, market, finance and forecasts. It reduces risk and is often needed to raise finance from a bank or investor — though forecasts can turn out wrong.
Tap a statement on the left, then the correct term on the right.
Purpose: businesses supply goods/services and add value; entrepreneurs take the risk (enterprise)
Added value = selling price − cost of inputs
Ownership: sole trader & partnership (unlimited liability) vs private limited company (limited liability)
Aims & objectives: survival, profit, growth, market share — often SMART
Stakeholders: owners, employees, customers, suppliers, community, government — objectives can conflict
Location & planning: market, labour, costs, online; a business plan helps raise finance
You've covered AQA Topic 1 — Business in the real world. Press Finish to see your score.
You've worked through Business in the real world for AQA GCSE Business. 🎉
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