Features of Businesses

Structure and type:

Sole traders are the simplest form of business, owned and run by one individual.
Partnerships involve two or more people sharing the profits and liabilities of a business.
Private limited companies (LTDs) are owned by shareholders who have limited liability.
Public limited companies (PLCs) are larger entities where shares can be bought and sold on the stock market.
Franchises operate under a franchisor’s established brand and business model.

Profit maximisation is one of the main goals for businesses, especially in the private sector.
Businesses may seek growth through increasing outputs, expanding to new markets, or acquiring other businesses.
The objective of survival can be paramount for new, small, or struggling businesses.
Many businesses put a high priority on providing quality customer service.
Social objectives, such as promoting environmental sustainability, might be the aim of social enterprises.

Success can be measured through profitability, market share, growth rate, and other financial indicators.
The size of a business can be determined by the number of employees, the breadth of its operations, or its total revenue.
The market share indicates the business’s competitiveness compared to others in the same industry.

The micro environment includes internal and specific external factors that directly affect the business (e.g., employees, suppliers, customers, competitors).
The macro environment comprises broader external factors that impact the whole industry or economy (e.g., political, economic, social, technological factors - also known as PEST factors).
The SWOT analysis is a tool used by businesses to evaluate their Strengths, Weaknesses, Opportunities, and Threats.

All businesses must comply with laws and regulations around trading, employment, health and safety, data protection, etc.
Ethical responsibilities may include promoting fair trade, reducing carbon footprint, or engaging in corporate social responsibility (CSR) activities.