This foundational component explores the fundamental nature of business activity, examining why businesses exist, the relationship between enterprise and entrepreneurship, and the various legal structures available for organization. It covers the spectrum of ownership from sole traders and partnerships to private and public limited companies, alongside not-for-profit organizations. Furthermore, it analyzes how businesses set objectives (mission statements, corporate aims) and how they navigate the dynamic external environment, including economic, political, social, technological, legal, and environmental factors.
What you need to know and understand
Essential terms to know
Practice questions tailored to this topic