Unit 1 Assignment
Unit 1: The Business Environment
Task 1: P1 – Here I will describe the type of business, purpose and ownership of two contrasting businesses.
HSBC – The for profit business I have chosen is HSBC. It was founded in 1865 in Hong Kong. They are now based in Canary Wharf, London. HSBC offer various different financial services all over the globe. These include securities, multinational banking, loans and holdings. They are in the service sector.
Profit in 2013: £10.4 billion
Employees: 254,066 worldwide
London Stock Exchange: 618.40 (as of 02/10/2014)
Oxfam – The not for profit business I have chosen is Oxfam. It was founded in 1942, in Oxford, England. Oxfam is also in the service sector, offering relief across the Globe. This means they are an international company. Their mission statement is as follows: ‘Working with thousands of local partner organizations, we work with people living in poverty striving to exercise their human rights, assert their dignity as full citizens and take control of their lives’
Employees: 2000 in the UK
Oxfam is a private company limited by guarantee. This is a rare sort of corporation, used by organisations who may need legal representation whilst still acting in the interest of the public. Instead of shareholders, companies limited by guarantee have members who act as guarantors instead of shareholders. These people will be liable for any debts if the company winds up.
HSBC on the other hand is a Public Limited company. This means they are traded on the stock exchange and can be purchased by anyone. The advantage of this is that it can raise capital. Additionally, as a limited liability company, if they were to get into financial trouble, their personal would be separate from the business and not held responsible for any debts. A disadvantage is that they must report the state of their finances to the public, so their worth can be evaluated by potential investors. They are also more strictly regulated than Private Limited
Task 1: P1 – Here I will describe the type of business, purpose and ownership of two contrasting businesses.
HSBC – The for profit business I have chosen is HSBC. It was founded in 1865 in Hong Kong. They are now based in Canary Wharf, London. HSBC offer various different financial services all over the globe. These include securities, multinational banking, loans and holdings. They are in the service sector.
Profit in 2013: £10.4 billion
Employees: 254,066 worldwide
London Stock Exchange: 618.40 (as of 02/10/2014)
Oxfam – The not for profit business I have chosen is Oxfam. It was founded in 1942, in Oxford, England. Oxfam is also in the service sector, offering relief across the Globe. This means they are an international company. Their mission statement is as follows: ‘Working with thousands of local partner organizations, we work with people living in poverty striving to exercise their human rights, assert their dignity as full citizens and take control of their lives’
Employees: 2000 in the UK
Oxfam is a private company limited by guarantee. This is a rare sort of corporation, used by organisations who may need legal representation whilst still acting in the interest of the public. Instead of shareholders, companies limited by guarantee have members who act as guarantors instead of shareholders. These people will be liable for any debts if the company winds up.
HSBC on the other hand is a Public Limited company. This means they are traded on the stock exchange and can be purchased by anyone. The advantage of this is that it can raise capital. Additionally, as a limited liability company, if they were to get into financial trouble, their personal would be separate from the business and not held responsible for any debts. A disadvantage is that they must report the state of their finances to the public, so their worth can be evaluated by potential investors. They are also more strictly regulated than Private Limited