Essay
Pearson BTEC National Business Unit 1 - Exploring a Business Assignment 2
- Module
- Unit 1 - Exploring Business
- Institution
- PEARSON (PEARSON)
Essay of 10 pages for the course Unit 1 - Exploring Business at PEARSON (Grade Distinction)
[Show more]
Seller
Follow
Content preview
Poppy-Grace McLean 447062 Unit 1: Exploring a businessP1- Explain the features of two contrasting businesses.
Ownership
Businesses ownership means who has the legal control over a business. Having ownership of a
business means that you have the legal right to order the businesses for example dealings and
operations.
Apple can be defined at a for-profit company. Apple is a public company which means that the
ownership of the business is made up of shareholders. This means that whoever had the most
shares have ownership of most of the company. There are some advantages and disadvantages of
being a public limited company. Some advantages could be that it raises share capital, this means
that instead of taking out a loan a business can increase their share capital and they also do not have
to pay interest. Another advantage could be that the business will have growth and expansion
opportunities, for example having more finance more easily available compared to a private
company means that they can be able to create and pursue new products, projects, and even new
markets, pay off potential debt and even fund research and development. Some disadvantages could
be that there are more regulatory requirements for public limited companies, for example they need
a trading certificate before the company can trade which is not needed for a private company. There
are also restrictions on the company’s share capital and limits on pre-emption rights and dividends.
The NHS can be defined as a not-for-profit company. There are advantages and disadvantages of a
not-for-profit company. Some advantages could be that the services provided by not-for-profit
companies benefit potential communities and segments of the population that can be overlooked or
underserved. Another advantage could be that if an organisation has a non-profit status, they can
take advantage of tax and financial benefits. This could mean that if donations to an organization are
tax-deductible donors will have more of an incentive to contribute. Another big advantage is that
not-for-profit has protection from personal liability. This means that the organizations founders,
officers, and workers are protected from the organization’s debts for example fines and lawsuits.
Some disadvantages could be that there is limited funding. Because most not-for-profit companies
only aim to break even and cover running costs. Another disadvantage would be that there is a social
pressure on the not-for-profit organizations.
Liability
Liabilities are the financial obligations to outside parties. Businesses must take on liabilities so they
can grow and operate. Having a good balance of liabilities provides a stable foundation for a
company. There are 2 types of liability. The first one is unlimited liability which means that the
owners share the businesses responsibilities equally, they are responsible for the profits and the
loses. This means that all owners are responsible for any shortfall of money if a business does not
have the funds. This could lead to all savings and possessions are at risk. The second type of liability
is limited liability which means there is a limited amount that can be claimed.
Both Apple and the NHS are in a limited liability. The main advantage of limited liability could be that
because the company exists as separate legal identity it protects its members from being personally
liable for business obligations. Another advantage could be that there is a tax advantage of being a
limited liability company. Because the law treats the income of limited liability as its members/
owners it means that the company can avoid double taxation. Another example of an advantage of
limited liability is that they are easy to set up and run. Some disadvantages of limited liability are
that its harder to raise capital. This is because limited liability companies normally only have 2 ways
of raising funds equity and debt, raising funds through the equity route means that you must sell
, Poppy-Grace McLean 447062 Unit 1: Exploring a business
stakes of the business and must add a member which means you will have another member to share
your profits with.
Purpose
The difference is purpose between Apple and NHs is that Apple is a for-profit organization, and the
NHS is not-for-profit.
Apple’s purpose - “To empower creative exploration and self-expression.” This shows that apples
purpose is to help people express themselves and explore their creativity.
The NHS’s purpose – “The NHS belongs to the people. It is there to improve our health and
wellbeing, supporting us to keep mentally and physically well, to get better when we are ill and,
when we cannot fully recover, to stay as well as we can to the end of our lives.” This shows that the
NHS is all about helping and supporting people whether they are struggling mentally or physically,
helping people when they are ill and even if they will not recover helping them stay as well as they
can till the end of their life.
A business having a purpose is important because companies will perform better if they have a
clearer sense of purpose. Research has shown that companies with a purpose generate more profit,
more engaged employees, and more loyal customers. Having a purpose will make a business more
successful.
Sector
Businesses operate in different sectors depending on the nature of their business and
services/products. There are 4 different sectors: primary, secondary, tertiary, and quaternary. The
primary sector sources the raw materials. The secondary sector processes the raw materials
produced by the primary sector so they can be sold on. The tertiary sector provides the supporting
service which store and distribute the goods. The quaternary sector provides support services. This
stage is also known as the beginning and future of every business because this sector includes the
research and development stage.
Apple comes under three different sectors: secondary, tertiary, and quaternary. They come under
the secondary sector because they produce their own goods and services. They also come under the
tertiary sector because the goods that are made are useful transportation and most of their goods
come with a GPS and internet. They also come under the quaternary sector because their goods and
services are information technology.
The NHS is a provider, so they come under comes under the tertiary sector because they are
providing a health service to the public based on clinical need. The NHS also has their own sectors
within the business they come under primary, secondary and territory. The primary sector is all
about the first point of contact for people who need some sort of healthcare, they will normally go
to professionals such as GP’s, dentists, and pharmacists. The secondary sector is all about hospital
and community care, it is either planned care or emergency care. The tertiary sector is all about
highly specialist treatment.
All businesses will be linked to another sector whether its inputs or outputs into each sector because
it will help frame a business which leads to the business having more success and growth.
Scope of business activities – local, national, and international
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller poppygmclean2005. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £5.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now