Why Businesses Exist

Year Level

Year 7 (Western Australia)

Duration

50 minutes

Class Size

25 students

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Unit Overview

Unit Title: Navigating Economics Together
Lesson Number: 4 of 25
Lesson Title: Why Businesses Exist: Types and Functions
Lesson Description:
Students will explore different types of businesses operating in Australia and understand the reasons why these businesses exist. They will engage in scenario discussions to comprehend how businesses meet consumer needs through providing goods and services.

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Curriculum Alignment

Western Australian Curriculum: Humanities and Social Sciences – Economics and Business (Year 7)

Content Description:

• AC9HE7K02: The reasons businesses exist and how different types of businesses provide goods and services
• AC9HE7K02_E1: Identifying why businesses exist — to produce goods and services, make profit, provide employment, how goods and services are supplied (shopping centres, local markets, online, small stores)
• AC9HE7K02_E2: Identifying features of different types of businesses, including sole proprietorship, partnership, cooperative, corporation, franchise, and not-for-profit organisations
• AC9HE7K02_E4: Recognising local examples of these business types

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Learning Objectives

By the end of the lesson, students will be able to:

1. Describe the primary reasons why businesses exist within the Australian economy (e.g., producing goods and services, making a profit, creating employment).
2. Identify and explain different types of businesses common in Australia (sole proprietorship, partnership, cooperative, corporation, franchise, not-for-profit).
3. Discuss how businesses meet consumer needs through their products and services.
4. Apply understanding through interactive scenarios reflecting real-world business situations.

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Lesson Resources

• Whiteboard and markers
• Printed scenario cards (business types and situations)
• Projector (for visuals/examples)
• Worksheet: Business Types and Their Functions (provided to each student)
• Local Australian business examples chart (digital or printed)

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Lesson Structure

Time	Activity	Details
0–5 min	Introduction and Learning Intentions	Briefly explain the lesson purpose and learning objectives. Activate prior knowledge by asking students what they think businesses do. Write keywords on the board: goods, services, profit, employment.
5–15 min	Direct Teaching: Why Businesses Exist	Use examples and questions to explain reasons for business existence: (1) produce goods and services, (2) make profit, (3) provide employment, (4) meet consumer needs. Use Australian-specific contexts such as local shops, markets, online businesses. Engage students by discussing familiar local businesses.
15–30 min	Types of Businesses Overview	Introduce the six business types: sole proprietorship, partnership, cooperative, corporation, franchise, not-for-profit. Use clear, simplified descriptions with Australian examples. Show visuals or a chart. Conduct a brief Q&A to consolidate understanding. Provide students with a worksheet to fill out as you go.
30–45 min	Scenario Group Discussions	Divide class into five groups. Give each group a scenario card describing a business situation typical in Australia (e.g., a sole trader running a car wash, a cooperative market, a franchise cafe). Groups discuss and identify the type of business and why it exists related to consumer needs. Encourage students to present back briefly.
45–50 min	Plenary and Reflection	Facilitate a class discussion reflecting on how businesses impact daily life and why they are important. Recap the lesson’s key ideas. Ask students to share one new thing they learned. Set a mini homework: find one example of a business near their home and identify its type and function.

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Detailed Activity Description

Introduction (5 min)

• Pose the question: Why do you think businesses exist? Write answers on the board under the headings: goods, services, profit, employment, others.
• Clarify terms briefly as students contribute.

Direct Teaching (10 min)

• Explain reasons businesses exist, linking each with real examples from Australia.
• Ask students to suggest types of goods and services they encounter daily.

Types of Businesses (15 min)

• Present six business types with definitions and examples from Australian contexts:
  • Sole proprietorship: A single owner, e.g., local handyman
  • Partnership: Two or more owners, e.g., law firm
  • Cooperative: Owned by members/customers, e.g., local food co-op
  • Corporation: Large companies with shareholders, e.g., supermarket chain
  • Franchise: Business using another’s brand, e.g., McDonald’s
  • Not-for-profit: Focus on community service, e.g., charity shops
• Provide worksheet to reinforce concepts.

Scenario Group Discussions (15 min)

• Each group receives a context scenario describing a business operation.
• Tasks: Identify the business type, discuss why the business was started, and how it meets consumer needs.
• Groups present to the class briefly (1-2 minutes each).

Plenary and Reflection (5 min)

• Summarise lesson points and relate to students’ lives.
• Ask: How do businesses help people? What surprised you?
• Mini homework: Identify a local business type and its function at home.

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Assessment Strategies

• Formative: Group presentations assessing understanding of business types and their reasons for existence.
• Class participation: Contributions during discussions and question answering.
• Worksheet: Completed notes and answers on business types.
• Homework: Simple descriptive paragraph identifying a local business type and function.

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Differentiation

• Provide sentence starters or vocabulary lists for ESL or lower literacy students.
• Offer extension questions for advanced learners, e.g., How might a not-for-profit differ in business goals compared to a corporation?
• Use visual aids and real-life examples to scaffold understanding.

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Cross-Curriculum Priorities & General Capabilities

• Aboriginal and Torres Strait Islander Histories and Cultures: Introduce briefly how some First Nations businesses contribute to communities through social enterprise.
• Literacy: Reading and interpreting business scenarios, discussing, and writing simple explanations.
• Critical and Creative Thinking: Analyzing scenarios, identifying business types, considering functions.
• Personal and Social Capability: Working collaboratively in groups and presenting ideas.

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Teacher Tips

• Relate lessons to students’ everyday experiences; ask about local businesses they know.
• Use questioning strategies to promote deeper thinking, e.g., Why might a business be set up as a partnership rather than a sole proprietorship?
• Encourage students to ask questions and relate examples from their community.
• Highlight that businesses exist not only to make profit but also to help meet community needs.

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This lesson plan is designed to engage Year 7 Australian students in economics and business concepts aligned explicitly with the Western Australian Curriculum AC9HE7K02 and related elaborations. It balances introduction, exploration, discussion, and reflection to cater to diverse learner needs within a 50-minute timeframe.