L2 BusinessUnit 1 – Business

Purposes

P1: Identify the purpose of four different business organisations

Learning objectives/intentions

To know the purpose of private sector organisations

To know the purpose of public sector organisations

To know the purpose of NGO organisations

Private sector organisations Part 1

Private ownership: Purpose to make a profit for the owner/s

Different types of Business ownership

Sole trader

simple to set up.

Profits and losses the owners

Got to inform HMRC within 3 months

Pay tax and National Insurance Contributions

Partnership: Like a sole trader. One partner can end up personally liable…

Private sector organisations Part 2

Co-operative

Getting popular again

. All sharing decisions etc

= shared decisions and profits

Normally small: http://www.eastofengland.coop/

Can be large: http://www.co-operative.coop/

Can be difficult if people not all wanting the same thing

Private sector organisations Part 3

Private Limited Company (Ltd)

New owners invited to join

Costs about £100 to set up

Can claim Tax back on items bought (=20% cash back)

Share liabilities between owners (not personally liable = company debts)

Public Limited Company (plc) similar to Ltd but

Shares sold to anyone

Expensive to set up (costs millions to ‘float’ on stock market

Business Ownership Part 4: N.G.O

Charity/Voluntary Organisations

Provide benefits for group/s in society

Money made goes on projects not to owners

Often volunteers rather than paid staff

Charities: From small and local http://h-park-counselling-centre.vpweb.co.uk

Massive and international

http://www.redcross.org.uk/

Business ownership part 5 Public SectorPurpose To help the population

Run by the government on behalf of the country

Public sector = The government

Departments, agencies and public bodies

Departments: run by Minister who bids for money each budget

Local authorities: Local councils provide community services which depend on the size and type of area.

Public corporations = expected to make a profit like BBC