Btec Business Unit 1 P1 - comparing a charity and Tescos.

by kamranbadboyhotmailcom (student)

Business Unit 1

Assignment 1 Task 1 P1

As a business advisor I have been asked by my headquarters to investigate two businesses within my area. My research will be used to make a judgement as to how the business will be affected by the worsening economic climate.
The two businesses that I have been asked to look are:

Intouch Foundation
Tesco Plc.

Intouch Foundation

Intouch Foundation is a charity. This business is a not for profit, this is because it is a charity. This business is usually run on donation. A not for profit business is a business which is run for a good a cause and is founded on the basis of helping the homeless. Intouch falls in the tertiary sector because it is providing a service for the homeless. This is done by feeding the homeless in towns and by using their own mobile kitchens. This business is local as it only helps the homeless in different parts of Bradford such as Keighley.

The purposes of Intouch foundation are to provide a service. This is done by serving meals to the needy. The second purpose is to expand, the business wants to expand to Leeds and start providing over there. This was listed on their website. The third purpose is to prevent or relive the homeless form poverty and hunger. To raise awareness to the public about the homeless. They do this by radio adverts and using their website ( )

The Charity is not owned by someone, it is run by trustees by a trust deed. Trustees are people who administrator the ...

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The Charity is not owned by someone, it is run by trustees by a trust deed. Trustees are people who administrator the charity solely for the purposes that they are based on.

Advantages:
The trustees make decisions together which means that there will be a less chance of making mistakes.
The business has no liability because it is set up as a not for profit business.
There is a double advantage in that registered charities enjoy certain tax exemptions, and there are tax reliefs for taxpayers who make donations to charity.
Charities have a higher chance of getting funds from the government.

Disadvantages:

Charities will have to produce an annual report to the charity commission stating all accounts and other relevant information.
If a trustee does something wrong then they are liable to personal liability.
There is a lot of paperwork involved in a charity.

Tesco Plc.

Tesco is run as a plc. This means that the business is run as a public limited company. Anyone can invest in the business and buy shares form the business. Tesco consists of two sectors: secondary and tertiary. The business is in the secondary sector because it manufactures its own products such as baked beans and tinned tomato. Tesco is also in the tertiary sector because it provides a service to the public this is because it sells its products to the customer.
Tesco is a very large business; it runs in over 12 countries which makes the business global.

There are many purposes of Tesco’s existence these include:

Providing a service- they do this by selling products to their customers, Tesco sell a variety of products to its customers such as their own credit cards and insurance.
Expansion- this is done because Tesco make more sales which means that they get more customers and profits which then enables them to open more stores.
To make profit- this is done because the business makes a lot of sales and gets more market share and profits.

Tesco is owned by a partnership as well as being owned by thousands of people, the company is owned by shareholders who put capital within the business. The shareholders get dividends at the end of the year which is like a reward for the risk that they take. This means that the business will get more capital. Shares within the business can be bought and sold for different prices. This type of ownership has limited liability which means that if the business goes bankrupt then they can only lose the money invested within the business and not personal assets. This business is very large and makes a lot of profit. The company is run by directors who control everything within the business. However there will be a lot of people to give account to.