• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Type of Business Ownership, sectors, types of bysiness and size of business

Extracts from this document...


Type of Business Ownership, sectors, types of bysiness and size of business A business is the buying and selling of goods and services. The term "business" is often applied to a large number of very different activities and organisations. It can be used to refer to organisations from elementary one-person firms to multinational corporations employing hundreds of people. Examples of business organisations include a supermarket or a university. There are three types of businesses, public, private, and voluntary. 2.1b The voluntary sector The voluntary sector is made up of non-profit organisations such as charities and youth centres. . The majority of the staff are unpaid and they volunteer for their position. Other mutual organisations such as cooperative societies and friendly societies are also non-profit making, but employ a significant number of paid staff. Charities are publicly or privately funded to increase awareness of a particular cause. They raise funds from donations. They may run a shop or sell badges. These activities aim to make a profit, but this is only to fund the charities main activities. An example of a charity is Oxfam. To be recognised as a charity the organisation must apply for charitable status with the Charities Commission, the government operates this. As a charity the organisation does not have to pay tax on its profits, so that its cause may receive maximum benefit. 2.1c Public sector: A number of key services are provided in the public sector, this includes the postal service, education, housing, fire, police etc. Before the privatisation, which started in 1979, many of these services were controlled far more directly by the hand of the government. Many of the services were later contracted out to private companies. The management of the business aspects of a service is know known to be of great importance and they have specialist managers working within, there are two reasons for this; to ensure the business lies directly in the hands of those directly responsible for running and managing the service. ...read more.


This is because if one partner enters into a business agreement with a third party, i.e. someone outside the partnership, then he is acting on behalf of the Partnership and not for himself. Hence the importance of clearly stating the duties and responsibilities of each partner. You can have a limited partnership, but importantly, one or more of the partners must have unlimited liability; the problem is: which partner will take on unlimited liability. You cannot transfer your share of the partnership to another without the consent of the other partner. Partnership This is when 2 or more people join together to form a business unit. Partnership easy to establish By agreement 20 owners in most cases ought to be a written deed of partnership unlimited liability work load pressure shared work loads can be allocated may go some way to eliminating problems experienced by sole trader. Can obtain greater finance than the sole trader or partnership. Decision making may be slow (must consult partners) The business tends to run more smoothly as there are shared responsibility and there fore the whole pressure of the business is not put on one person, also the decision making is made by more than one person and therefore there is more than one person's opinion shared. A sleeping partner invests in the partnership but does not take part in the day to day running. This person has limited liability, but at least one partner must have unlimited liability. A Deed of Partnership is a legal document that forms a contract between the partners. It covers issues such as the division of profits, the closure of the partnership, the rights each partner has and the rules for taking on new partners. The Partnership Act rules that in the absence of a partnership agreement profits will be shared equally and no interest is received on capital. Partnerships are associations of two or more people to carry on a business with a view to making a profit; they can consist of 2-20 owners in most cases, but normally no more than 20. ...read more.


Each member has one vote at meetings. Retail co-operatives are a dying force in UK retailing because they have been unable to compete with other retail outlets such as the large supermarkets. Co-operatives are where groups of people come together for shared benefits. Its members believe in co-operation, working together for a common purpose. Worker Co-operatives are businesses owned and run by the whole workforce. They share ownership, control and the profits amongst themselves. They are often set up due to business failure. A Consumer co-operative could be a high street store owned by customers and aim to maximise benefits for its customers e.g. Co-op. The main advantages of a co-operative organisation are that there are less likely to be disagreements as workers are also the owners and each member has a vote. Also all workers should be paid the same. Though there are advantages, there are more disadvantages to this type of business: it is difficult to persuade workers to maintain co-operative because it is easier to set up a partnership. New workers may also find it hard to settle into the business as a unit has already been formed between the workers. It is also difficult for a co-operative organisation to grow. 2.1j Charitable and non-profit organisations: Charities have a high profile in the UK. Organisations such as Oxfam and Mencap are familiar to most people. Charities have a number of clear objectives: to raise the public's awareness of the cause that they support and to raise funds to support their projects. Charities trade with the intention of earning as much revenue as possible to spend on their particular causes. Pressure groups operate in a similar way to charities; they are a collection of people who support a common cause. Their objectives includes bring publicity to the causes they promote, they aim to increase the number of people who support their activities. Members provide money through subscriptions and donations, and some may be prepared to support the cause through direct action. Another important objective is being seen to care for the environment. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. Marked by a teacher

    NVQ level 2 unit 2 Business Administration. Worksheet on Principles of providing administrative services

    5 star(s)

    Include at least three reasons in your answer. Customer service should exceed expectations as it will result in repeat business, customer loyalty and good publicity. It will help the business to grow and give the staff greater job security, motivation and job satisfaction.

  2. Marked by a teacher

    functional areas in oxfam and sainsburys

    4 star(s)

    This is because marketing are in charge of carrying out market research. They then analyse the market research to see what customers want at Sainsbury's. This can improve Sainsbury's because if they know what the customers want they can improve Sainsbury's by using the customer's opinions.

  1. Functional Areas Report

    Human resources A firm needs to be able to decide on the right people for the jobs it has and ensure that its employees - the people who work for the firm - work well and are content. The part of the production that deals with matters relating to the

  2. The type of ownership Cadbury Schweppes PLC.

    * Privacy is maintained as financial details do not have to be published. * Due to the small size of the business, John could put forward a personal service to their customers. Disadvantages: * John had no one to share the responsibility of running the business with.

  1. In this assignment I will describe the type of business, purpose and ownership of ...

    The government are also interested in the success of the business because if the organisation employs a lot of people then they will not have to pay out benefits. Newham Local Service Centre Customers: Customers which are in this case the people, who work, live or study within the borough of Newham, are the main important people in the organisation.

  2. In this section I will explain every one the different types of business ownership. ...

    that they have invested in the company, and are not liable for the debts incurred by the company unless signing a personal guarantee. Unlike a public limited company, a private limited company is restricted from selling shares to the public.

  1. Unit 1: Principles of Personal Responsibilities and Working in a Business Environment

    By doing this it can help the other individual to know that they have got the other persons attention. Another method that can be used is to maintain eye contact, by maintaining eye contact it determines that the other individual is focused which can help others to know that they are being listened to.

  2. Describe the type of business, purpose and ownership of two contrasting organisations. The ...

    Using money from the tax shows that all working people support this service. The fire service exist as a safety feature too our life?s, its main purpose is to stop fires but they work closely alongside the police and fire ambulance service.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work