Cambridge AS A Level Business Studies/ ZIMSEC Advanced Level Business Studies/ Business Enterprise Skills Notes: Enterprising: The Nature And Purpose Of Economic Activity

  • As we live our lives we interact with businesses (enterprises) on a daily basis
  • The shop from which we buy bread and other groceries
  • The vendor who sells us vegetables
  • As is already apparent to you, businesses take many forms
  • However, all businesses have some things that are common to them
  • These elements can be used to define what a business is
  • There are many ways to define what a business is
  • A business is when someone ( or a group of individuals) working together in an organised way to achieve a certain purpose
  • We must add here that businesses and enterprises are one and the same thing
  • So a business also involves an entrepreneur combining the factors of production to satisfy needs and wants
  • As mentioned above there are two key elements of a business:
    • It has to be an organised and conscious effort
    • Secondly, there has to be set purpose(s) or objectives that the business owners intend to achieve
  • For most businesses, the overriding aim is to make a profit and increase the wealth of the owners(proprietors)
  • However, there are other business objectives besides these

To access more topics go to the Advanced Level Business Studies/ Business Enterprise Skills page

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