Business and

Business
Environment
P1 Explain different types and purposes of organisations;
public, private and voluntary sectors and legal structures.

Sole trade is the business operated and owned by a single individual. The sole
proprietor is the sole profit takers of the business. The liability of the owners is very
high (Cavusgil, Knight, and Riesenberger, 2012). The Elixir is a sole trade
organisation which sells customized softwares. Mr. John is its owner. This is a profit
making business.

The partnership is the business entity of several individuals who engage themselves
in the business operation following the deed. The liabilities of the partners may be
limited or unlimited. The Grapevine is a partnership business in the UK. it is
engaged in operating a super store. It has 15 members and objected to make
profit.
P1 Explain different types and purposes of organisations;
public, private and voluntary sectors and legal structures.

The Private limited company is a company of having limited liability with private
shares. Bestway is a private limited company. it has 30 members and its main
purpose is making profit for them. It performs wholesale, Cement, Banking,
Pharmacy activities with a view to earning profits. It can operate its business
operations with the excellence of its owners and directors.

A public limited company is the business where the membership of ownership is

open to the public. Asda as a Public Limited Company. It is a profit oriented
business entity. The maximum number of the company has no upper limit. It can
issue as many as stocks to the public (www.asda.com, 2017). It expresses
advertisement to the public through a prospectus for offering equity. It is subjected
to effective control and supervision for its operation.
P1 Explain different types and purposes of organisations;
public, private and voluntary sectors and legal structures.

The difference between private and public limited companies are described
as follows:

The required minimum members must be 2, and the maximum members

can be 50 for Bestway. On the other hand, Asda requires minimum 7
members and there is no limitation for its maximum members. Bestway
group cannot transfer its shares as a complete restriction is prevailed in
transferring its the shares. Again, Asda can transfer the shares as a Public
company. Bestway Group cannot issue Prospectus, whereas Asda is free to
issue a Prospectus. This opportunity is only given to the public limited
companies.
P1 Explain different types and purposes of organisations;
public, private and voluntary sectors and legal structures.

Bestway Group must have at least 2 directors for managing its operations. On
the other hand, Asda must have at least 3 directors for its operational
activities. As a Private Company, Bestway Group cannot introduce share
Warrants against its fully paid equity. But Asda can introduce Share Warrants
against its fully paid up equity. Bestway Group has no compulsion of calling
the Statutory Meeting of the member. On the other hand, Asda has to call its
statutory meeting for filing the Report to its Register.
P1 Explain different types and purposes of organisations;
public, private and voluntary sectors and legal structures.

Voluntary organization
A voluntary association is the group of individuals who involves into an
agreement for attaining a specific purpose. These type of organisations are
formed for bringing socio-economic development of rural people, promotion of
art, culture & sports. Bloodbot is a voluntary entity and it is a non-profit
organisation. Its purpose is to manage blood for emergency patients.
P1 Explain different types and purposes of organisations;
public, private and voluntary sectors and legal structures.

Charitable organization
The charitable organisations are the non-profit organization (NPO) which is
technically known as a public charity. It focuses on goals of a general philanthropic
nature like charitable, educational and religious intentions.The activities of charitable
organisations vary from country to country. Again the regulation and tax treatment
may affect the activities of these organisations. Marie Curie is a charitable
organisation. it is not a profit oriented entity. it tries to solve social problems. The
purposes of Charities and Voluntary organisations are the same as follows:
 Established for charitable, social, philanthropic, religious or political purposes.
 They must use any profit or surplus for meeting their purposes.
 They are not a part of any local authority or another statutory body.
P1 Explain different types and purposes of organisations;
public, private and voluntary sectors and legal structures

Government organisation
The government organisation is a company that has a minimum of fifty-one percent
paid-up share equity by the Government. NHS is such kind of organisation and it
operates for rendering public service to the mass for uplifting their life standard. The
entity is fully governed by the UK government.

Cooperative
Cooperatives are formed by different same minded individuals who operate the financial
activities for their own benefits. Such entities are successful in the marketing processing
of farm products, equipment, and raw materials collection, wholesaling, retailing, credit
and banking etc. The consumer and agricultural marketing cooperatives were
introduced in the UK at the mid of the 18th century. Co-operative Press is one of the
oldest co-operatives in the UK. It operates for the betterment of its members.
P2 Explain the size and scope of a range of different
types of organisations

Sole proprietorship Scope:

The scopes of Elixir are numerous. It is
very much fruitful for businesses that
need to take quick decisions. The
Name of business The Elixir business entity is very much flexible for
Location London the owners. It can establish its business
operations as a partnership. For this, its
Business owner Mr. John
owner must have consented to it. The
Capital amount 1 million GBP business can thus add a different expert
Yearly revenue amount 2.5 million in its operations.
Number of employees 20
P2 Explain the size and scope of a range of different
types of organisations

Partnership business
Scope:
The scopes of the Grapevine are also
Name of business The Grapevine
numerous. It can add more partners to
increase its capital. It can also add
Location Birmingham experienced individuals to the business
ownership to increase the efficiency of it.
Number of business owner 15 The complex businesses can be
performed through it. The partners
Capital amount 20 million GBP
participate in meeting to solve any
50 million GBP
critical problem. Thus they can make the
Yearly revenue amount
best solution for any critical problem.
Number of employees 40
P2 Explain the size and scope of a range of different
types of organisations

Private Limited Company Scope:

As a private limited company, it has
Name of business Bestway Group some restrictions. But it is very much
Location London, United Kingdom comfortable for some same minded
people to operate their business
Number of owners 30 operations. The owners get engaged in
an operation to conduct the functions
Capital amount 3.4 billion GBP
properly. The entity has vast
Yearly revenue amount 4 billion GBP opportunities to expand in various
industries with the accumulation of
Number of employees 33,600
capital, human resources, and skills.
P2 Explain the size and scope of a range of different
types of organisations

Public Limited Company

Scope:
As a public limited entity, Asda has
Name of business Asda Stores Ltd ample opportunities to expand its
Headquarter Asda House, South Bank, business. It can expand its business by
West Yorkshire, England investing in new project. To initiate the
project, it needs adequate finances. It
can avail finances from issuing shares to
Number of locations Increase 631 [As of 31 January the public. Here the management is
2017] separated from the owners. Thus the
Operating income £1 billion
managers are responsible for any
mismanagement done. Asda has the
Number of employees 180,000
vast possibility to raise funds for
implementation of its future plan.
P2 Explain the size and scope of a range of different
types of organisations

Cooperative
Scope:
The Cooperative Bank has also ample
Name of business The Cooperative Bank scopes for achieving its goals. It can
expand its business within a short
Location Balloon Street Manchester,
period. Many employees work here. It
United Kingdom
should train themselves and utilize
themselves in proper business
Capital amount £1.57 billion
operations.
Yearly revenue amount £512 million

Number of employees 4,000

References

 Rees, A. (2009). Consumer behaviour. 2nd ed.

 Saleem, S. (2010). Business environment. 1st ed. Delhi: Pearson.
 Cavusgil, S., Knight, G. and Riesenberger, J. (2012). International business.
Upper Saddle River, N.J.: Prentice Hall/Pearson.
 Henson, A. (2009). Albania's business environment. London: GMB.
 Aras, G. and Crowther, D. (2011). Governance in the business environment.
1st ed. Bingely, U.K.: Emerald.