HNC Unit 1 LO1 revised
HNC in Business
Unit 1 Business Environment
LO1 Understand the Organisational Purposes of Businesses
Student Name: Lisa Saunders
Tutor: Fabrizio Donati
Submission date:
Understanding Organisational Purposes of Businesses
Introduction
In this report I will endeavour to establish the purposes of different types of organisations. I will also ascertain the degree in which they meet the objectives of different stakeholders and explain the responsibilities of different organisations and how they meet those obligations. I will also compare the purposes of different types of organisation. To enable me to do this effectively I will firstly give a brief overview of the different types of organisations and what is meant by purpose.
Types of Organisation
Business organisations can be categorised in several way including legal structure and industrial sector.
Legal structures:
Sole Trader – This is an individual who runs their own business; they provide all the capital that goes into the business and are self-employed.
Partnership – consisting of 2 or more people who share ownership of a company with the intent to make a profit, they are more often than not professional bodies such as lawyers etc.
Private Limited Companies – More structured than a partnership and must have 2 or more shareholders. It is a corporate association therefore the company has its own legal identity separate from the people who own it.
Public Limited Companies – These are larger than private limited companies mainly due to their ability to sell shares to the general public on the stock market, which generates greater income to fund expansion.
Co-operatives – This is when a number of individuals or companies work together to achieve a collective purpose, they are generally not mainly profit driven.
Non-Profit Organisations – These include charities and are do not have any owners, they also have tax advantages and hence are required to be registered with
Unit 1 Business Environment
LO1 Understand the Organisational Purposes of Businesses
Student Name: Lisa Saunders
Tutor: Fabrizio Donati
Submission date:
Understanding Organisational Purposes of Businesses
Introduction
In this report I will endeavour to establish the purposes of different types of organisations. I will also ascertain the degree in which they meet the objectives of different stakeholders and explain the responsibilities of different organisations and how they meet those obligations. I will also compare the purposes of different types of organisation. To enable me to do this effectively I will firstly give a brief overview of the different types of organisations and what is meant by purpose.
Types of Organisation
Business organisations can be categorised in several way including legal structure and industrial sector.
Legal structures:
Sole Trader – This is an individual who runs their own business; they provide all the capital that goes into the business and are self-employed.
Partnership – consisting of 2 or more people who share ownership of a company with the intent to make a profit, they are more often than not professional bodies such as lawyers etc.
Private Limited Companies – More structured than a partnership and must have 2 or more shareholders. It is a corporate association therefore the company has its own legal identity separate from the people who own it.
Public Limited Companies – These are larger than private limited companies mainly due to their ability to sell shares to the general public on the stock market, which generates greater income to fund expansion.
Co-operatives – This is when a number of individuals or companies work together to achieve a collective purpose, they are generally not mainly profit driven.
Non-Profit Organisations – These include charities and are do not have any owners, they also have tax advantages and hence are required to be registered with
References: Ian Worthington & Chris Britton – The Business Environment 6th Edition Pg. 238 – 250 www.tescoplc.com Phoenix-academy.org www.co-op.ac.uk/2013/02/telford-schools-form-co-operative-multi-academy-trust/#.VFOvxfmsXTW www.tesco.ie/crrreviews08/manager-stakeholders.html www.mallenbaker.net/csr www.corporatewatch.org The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts