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

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

Extracts from this document...


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: 1. Intouch Foundation 2. Tesco Plc. http://intouchfoundation.co.uk/grid01.jpg 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. ...read more.


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. ...read more.


* 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. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Business Studies 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 AS and A Level Business Studies essays

  1. Unit 4 P7 Outline electronic and non-electronic methods for communicating business information, using examples ...

    Tesco PLC uses video conferencing in order to speak to employees that may be located in another geographical area, Tesco PLC personnel are also able to use video conferences in order to talk to many people at the same time.

  2. Unit 2 Managing Financial Resources and Decisions - notes and calculations

    Long term * Low risk Disadvantages/costs: * Even if no profit the interest payment still to be paid * Could be a costly and difficult source of finance * Maybe restrictive rules in the debenture agreement * Time cost of papers required to obtain the debenture * Pressure to ensure

  1. An evaluation of the business information used to make strategic decisions at Tescos

    The manager then works out the production cost. The management accountants of Tesco set out the budget for Tesco. They require the verbal information, and written information of all the sales figures. The decisions made by the finance function are the decisions relating to the money.

  2. How Government Spending Could Affect A Tile Business.

    in taxation as it would affect the economy as, the people and AL-MURAD the business itself would have more money to spend and have demand from the customers as the overall aggregate demand in the economy would increase.

  1. How Environmental And Global Events Could Affect A Business.

    make the tiles as well as receiving the tiles back to the UK due to the high prices of transportation, this would have a negative impact on AL-MURAD as then they would have to put their prices of tiles high and then it would be expensive for customers to buy

  2. Ratio analysis is all about comparing one figure to another. Ratio analysis also allows ...

    Efficiency Efficiency ratios are used to assess how well management is controlling key aspects of the business primarily stock and finances. There are three efficiency ratios which are known as: Debtors? payment period This is calculated using the following formula: Debtors X365 Credit sales When you do not know what

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