Why Businesses Exist

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…