L2 Business Unit 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 Sector Purpose 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