Btec Business Level Three - Unit 1 - the Business Environment Assignment 1
BTEC National in Business
Unit 1- The Business Environment
Assignment 1 – Types of Businesses
Task P1 The BBC is the largest broadcasting organisation in the world. Its mission statement is to enrich people lives with programs that inform, educate and entertain. The BBC has the second largest budget of any UK broadcaster with an operating expenditure of £4.23 billion in 2009/2010. The only UK broadcaster with a larger operating expenditure is British Sky Broadcasting with £5.9 billion (http://en.wikipedia.org/wiki/BBC#Finance). The reason that Sky’s operating expenditure is higher is because Sky is a private sector PLC, which means that the public can buy shares in a company. Selling shares means more capital income is invested in the business as people invest their money hoping that the value of their shares will increase. Sky will then use this money from the shares to improve their broadcasting service by offering better quality, more programs and more channels. With the BBC being a public sector organisation it doesn’t have shares therefore the BBC wouldn’t receive more income from selling shares meaning that they have a lower operating expenditure. The BBC is in the public sector meaning that it is owned and funded by government grants which are funded through tax payer’s money, through income tax which in effect means that the taxpayers own the BBC. The public sector is in decline as government have had to cut funds to some government funded public sector services such as the Police service as many local police stations have lost their funding because the United Kingdom is in recession so government have tried to find ways to reduce the countries debt which means reducing costs through reducing funds to some government organisations. The BBC creates £3,446.8 million in license fees collected from householders, £888,3million from BBC Commercial businesses, £293 million from government grants and £112.9 from other income such as providing content for
Unit 1- The Business Environment
Assignment 1 – Types of Businesses
Task P1 The BBC is the largest broadcasting organisation in the world. Its mission statement is to enrich people lives with programs that inform, educate and entertain. The BBC has the second largest budget of any UK broadcaster with an operating expenditure of £4.23 billion in 2009/2010. The only UK broadcaster with a larger operating expenditure is British Sky Broadcasting with £5.9 billion (http://en.wikipedia.org/wiki/BBC#Finance). The reason that Sky’s operating expenditure is higher is because Sky is a private sector PLC, which means that the public can buy shares in a company. Selling shares means more capital income is invested in the business as people invest their money hoping that the value of their shares will increase. Sky will then use this money from the shares to improve their broadcasting service by offering better quality, more programs and more channels. With the BBC being a public sector organisation it doesn’t have shares therefore the BBC wouldn’t receive more income from selling shares meaning that they have a lower operating expenditure. The BBC is in the public sector meaning that it is owned and funded by government grants which are funded through tax payer’s money, through income tax which in effect means that the taxpayers own the BBC. The public sector is in decline as government have had to cut funds to some government funded public sector services such as the Police service as many local police stations have lost their funding because the United Kingdom is in recession so government have tried to find ways to reduce the countries debt which means reducing costs through reducing funds to some government organisations. The BBC creates £3,446.8 million in license fees collected from householders, £888,3million from BBC Commercial businesses, £293 million from government grants and £112.9 from other income such as providing content for