This is an assignment where I am going to compare and investigate two different types of businesses. One of the businesses is a Sole Trader and the other is a Private limited company.

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Assignment Unit: 2

HOW BUSINESSES DEVELOP

This is an assignment where I am going to compare and investigate two different types of businesses. One of the businesses is a Sole Trader and the other is a Private limited company.

Types of ownership

As we all know sole trader is a type of business owned by one person and it is the simplest form of business organization. The owner of the business has complete control of his business and makes his own decisions in running the business. Many sole traders work on their own, or with family members or even employ people to help them run their business. The business organization I am investigating, as a sole trader is Balti Raj, an Indian Takeaway that is owned by a single owner named Afzal. Afzal owns his business since 1996, when he opened his business in New Barnet. He employs a total of five people to help him run his business, out of which two work in the kitchen, two delivery men, a receptionist and the chef is Afzal himself. Balti Raj has unlimited liability which means that if the business is unsuccessful Afzal may have to sell his personal possessions and properties to pay any debts. He might also get bankrupt if he still has debts to pay after giving away all his personal possessions.

A Private Limited Company is a company where the shares of the company cannot be bought and sold without the agreement of the owners. As a result it is possible to maintain close control over the way the business is run. The company I have chosen as a Private Limited Company is Waitrose. Waitrose, the food shops of the John Lewis Partnership, is a Private Limited Company and wholly owned subsidiary of John Lewis Plc. The main branch of Waitrose is situated in Doncastle Road in Bracknell. It has got over 135 stores located throughout the Midlands and the south of England- from Nottinghamshire to Cornwall. Waitrose’s annual turnover is over 2 billion pounds. Therefore, they have got limited liability, which means that the owners of Waitrose are personally responsible for all the debts the business incurs.

Industrial Sectors

All businesses, whether they are in the private or public sector operate in three industrial sectors.

  1. Primary Sector
  2. Secondary Sector
  3. Tertiary Sector

a) Primary Sector

    The Primary sector is concerned with producing or obtaining raw materials. This can often mean extracting natural minerals or natural products. Industries in the primary sector include:

  • Farming and fishing, producing the basic foodstuffs needed by society.
  • Forestry, producing the timbre that is used in making houses, furniture, paper and other items.
  • Mining and allied industries, producing coal, oil and gas for heating and power, metals for construction and manufacturing goods, and stone for building.

b) Secondary Sector 

     The secondary sector is mainly involved with manufacturing, processing, assembly and construction. This mostly relates to manufacturers of consumer and industrial goods. A paper mill, a carpet factory, a shipyard, a house builder and many others are all found in Secondary Sector.

         

c) Tertiary Sector 

  The tertiary sector is often called the service sector. It includes providing services to customers, consumers and business such as so on. The tertiary sector can be divided into four sections:

  • Public services
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This includes administration, defence, health, education and personal services such as hairdressers.

  • Financial and business services

This section includes banks, insurance companies, advertising, law, accountancy and so on.

  • Transport and communication

Transport and communication section includes haulage companies, bus and train service providers, radio services, telecommunications and television companies.

  • Retailing, distribution, hotels and catering

This part of the tertiary sector includes shops, distributive services, inns & pubs, fast food outlets and many others.

As Balti Raj is involved in providing fast food services it lies in the Retailing section of the Tertiary sector. It might also ...

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