Why Businesses Exist

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  • Created by: GeorgeB16
  • Created on: 10-11-15 20:12

Businesses supply goods or services

  • Businesses sell products to customers who are willing to pay for them. They can be in the form of goods or services, necessities or luxuries.
  • Goods - Physical items such as books, furniture, etc.
  • Services - Actions performed by other people to aid the customer such as travel agents, hairdressers, etc.
  • Necessities - Goods or services you need such as gas, electricity, etc.
  • Luxuries - Things you want but you don't need such as holidays or jewellery.

Advantages to owning a business

  • Businesses need to make a profit - their revenue needs to be higher than their expenditure.
  • Starting a business is risky but people could make big financial rewards from it.
  • A business owner could make

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