l2 business unit 1 – business purposes p1: identify the purpose of four different business...
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L2 BusinessUnit 1 – Business
Purposes
P1: Identify the purpose of four different business organisations
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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
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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…
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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
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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
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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/
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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