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Understand the purpose and ownership of business Assignment Pl MI Pl Explain the purpose of businesses order to pass this assignment, you should: I Scenario work for a dynamic local Learning and Skills Council which has a passion for informing young people about the world of work. You have been working as part of a team, preparing training materials for young people. Your line manager has been impressed with your work and has now given you an individual task which is to prepare a series of documentation for use in local schools & colleges.
You ill use information which you have obtained from secondary research about four different business organizations. You can include images, diagrams and charts in the documentation you prepare in order that they are attractive to the students who will be using them. I Task 1 In the space below write a paragraph explaining the purpose of business. Most people will start a business to increase their profit also escaping their boring job and being self employed. Task 2 Explain how business aim to make a profit All business activity costs money. Businesses have to pay for items such as raw trials, wages and salaries, and other running costs.
To cover their costs, businesses must sell the goods and services they make. If its income is greater than its costs, the business will make profit. Task 3 Write a brief paragraph on each of the following Sole trader The most common form of business organization, describes any business that is owned and controlled by one person, although they may employ works e. G a newsagents snoop. Monolinguals won provoke a spectacles service Like a enamelware’s, plumbers or photographers, are also sole traders. Sole traders do not have a separate legal existence form their owners are personally Partnership Business owned by two or more people.
Partnerships are bigger than sole traders the advantages of having a partnership is that is relatively inexpensive and easier to start than private limited business; partnerships can follow less government laws also partnership business pay taxes that are not corporation. There are few disadvantages such as unlimited liability and is more difficult to change a partnership to a bigger business organization. Private Limited Company A private limited company (Ltd)is often a small business such as an independent retailer in a market town . Shares do not trade on the stock exchange. Charity Charities may also be small and employ only a few staff.
Others are massive national or international operations such as cancer search or a British cross, Non-profit organization if profit is made it goes to people or animals need. Voluntary organizations Voluntary organizations are organizations they are similar to charities, people work for free to help youngsters or to provide help for people. For example: Yucca Social Enterprises Social enterprises that involve people for example Deco’s is a social enterprise because it gives us stuff we need and when we buy them the people who provide them get money from us so they earn profit.
Task 4 Compare and contrast the ownership of two selected businesses. Use the help sheet below to guide you. Unit 1 Merit Help Sheet Aims: The longer term vision or goals of a business Objectives: Specific measurable targets to help achieve the overall aim of the business when contrasting two Duskiness’s use a tattled. Make sure Tanat you use Dull sentences ND not bullet points. You may want to make sure that you address these points: * Why are these organizations in business? In other words what do they want to achieve? What are the main aims of the business? * What are the objectives of the business? How do the activities they carry out help them to meet their aims and objectives? I SAD I McDonald’s I Similarities and Differences I Ownership I SAD is a public Limited company. I McDonald’s ownership is franchise. I They are both big companies and owned by a lot of people, not Just by one person. Difference s anyone can buy the franchise McDonald’s and SAD needs at least 2 people to own it whereas in McDonald’s is one .
I Aims I The aims of To offer quality products at low price – Recycling their waste – Packaging their products well -Supporting Voluntary Services and Assisting charities in UK -Providing Financial assistance and insurance -Reducing energy consumption and being environment friendly -Building a Sustainable business -Surviving as a business I The aims of…… – To serve good food in a friendly and fun environment – To be a socially responsible company To provide good returns to its shareholders – To provide its customers with food of a high standard, quick service and value for money I Both provide good customer service.
Also they both support charities. Both are environmentally friendly and both recycle their waste. Sad’s main aim is to survive the business whereas McDonald’s main aim is to provide food of high standard and quick service. I Objectives I The objectives of…. -to identify ways to tackle the problem of food waste -To be recognized as the most affordable supermarket in the country – to reduce the amount of own label packaging by 25% | The objectives of…..
They wish to provide tasty foods for their customers, so they can make money. “Making Money” is the main objective of any business and without it the company would go bust. They want to succeed in beating their rivals (KEF, Burger King etc) so they need to make their customers happy. I Both sell goods and create as much profit as possible. Both customer service friendly. Both compete with other stores / restaurants. Sad wants to be the most affordable supermarket , whereas McDonald’s main aim is ‘making money’. I