Understanding the nature and purpose of business

Why businesses exist

Businesses create employment = Bringing in employment enables people to earn incomes and to benefit from being able to purchase a range of goods and services
Businesses create wealth = Businesses paying taxes means the goverment is able to use this monety in a variety of ways, including building schools and power stations
Businesses create new products = Businesses can enrich the lives of people in the UK by creating new goods and services
Businesses enhance a countrys reputation = Can help establish and maintain a countrys reputation for being innovative and forward looking

Types of businesses

Primary - Argiculture, forestry, fishing, mining abd quarrying, oil and gas extraction
Secondary - Manufacturing, construction and the supply of electricity, gas and water
Tertiary - The supply of services, for example hotels, catering, transport, education and health - over time the tertiary sector has supplied an increasing proportion of production (measured by GDP) in the UK while manufacturing businesses have become relatively less important

The relationship between missions and objectives

Mission statements - reflects the organisations values, financial goals, benefits of the business to the community and how consumers are to be satisfied
Aims - Long term plans which a business's objectives are derived; these are…

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