What a business is
Introduced| English | Meaning |
|---|---|
| business/ˈbɪznəs/ | An organisation that supplies goods or services, usually in exchange for payment. |
| factors of production/ˈfæktəz ɒv prəˈdʌkʃn/ | The inputs used to produce goods and services: land, labour, capital and enterprise. |
| primary sector/ˈpraɪməri ˈsektə/ | The part of the economy that extracts or harvests natural resources. |
| secondary sector/ˈsekəndəri ˈsektə/ | The part of the economy that manufactures goods or constructs buildings and infrastructure. |
| tertiary sector/ˈtɜːʃjəri ˈsektə/ | The part of the economy that provides services. |
| sole trader/səʊl ˈtreɪdə/ | A business owned and operated by one person, usually without a legal separation between the owner and the business. |
| unlimited liability/ʌnˈlɪmɪtɪd ˌlaɪəˈbɪlɪti/ | The owner's legal responsibility for business debts without a fixed limit, potentially putting personal assets at risk. |
| partnership/ˈpɑːtnəʃɪp/ | A business owned by two or more people who share its management, profits and responsibilities under an agreement. |
| limited company/ˈlɪmɪtɪd ˈkʌmpəni/ | An incorporated business legally separate from its owners, whose liability for its debts is generally limited. |
| stakeholders/ˈsteɪkhəʊldəz/ | People or groups with an interest in, or affected by, the activities of an organisation. |
A business is an answer to somebody's problem
- A business 企业 combines resources to produce goods or services that people will pay for.
- If nobody would pay, it is a hobby. The willingness to pay is what makes it a business.
- Factors of production 生产要素 are what it combines: land, labour, capital and enterprise.
A hobby can make you happy; the rent still prefers cash.
Which are factors of production? Choose all that apply.
Difficulty 2/5 · 140 coins + a small bonus on first completion today
Profit is a result of combining them, not one of the inputs. Enterprise is the fourth.
The three sectors
- The primary sector 第一产业 extracts: farming, fishing, mining.
- The secondary sector 第二产业 manufactures: turning materials into products.
- The tertiary sector 第三产业 provides services, and it is where most people in a developed economy work.
- The mix shifts as an economy develops, which is why the sectors are a measure and not just a list.
Match each activity to its sector.
Difficulty 2/5 · 140 coins + a small bonus on first completion today
The mix shifts as an economy develops, which makes the sectors a measure rather than a list.
Ownership decides who loses
- A sole trader 个体经营 owns everything and has unlimited liability 无限责任: business debts reach personal assets.
- A partnership 合伙企业 shares both.
- A limited company 有限公司 separates the owners' money from the firm's, so a failure costs the investment and no more.
- That separation is the reason limited companies exist, and it is what makes raising money possible.
A sole trader's business fails owing money. What can creditors reach?
Difficulty 1/5 · 100 coins + a small bonus on first completion today
This is the most consequential difference between business forms, and why limited companies exist.
Stakeholders
- Stakeholders 利益相关者 are everyone affected: owners, employees, customers, suppliers, the community.
- Their interests genuinely conflict, and a decision that pleases all of them is usually a decision that changes nothing.
A café raises wages by 15%.
Employees gain. The owner's profit falls. Customers may face higher prices. Suppliers are unaffected.
A stakeholder question is marked on naming who and saying how much it matters to them — not on listing everyone you can remember. Four named stakeholders with an effect each beats eight names with none.
How is a stakeholder question marked?
Difficulty 1/5 · 100 coins + a small bonus on first completion today
Four named stakeholders with an effect each beats eight names with none.
A shop opens on Sundays. Name one stakeholder and the effect on them.
Difficulty 3/5 · 200 coins + a small bonus on first completion today
Example: "Staff lose a guaranteed day off, which may raise wage costs if Sunday hours are paid at a premium."
Unlimited liability is the single most consequential difference between business forms. A sole trader whose business fails can lose a house; a shareholder in a limited company loses only what they put in.
Do not treat "the community" as a stakeholder without saying how it is affected. Naming a stakeholder is worth nothing on its own; the mark is for the effect, and a vague gesture at society reads as padding.