Impact of Business & Business Environment

TASK 1

P1 Different types and purpose of business organisations

On the basis of size and purpose, business organisations are classified into three different parts, such as -

Public sector organisations – These sector are considered as vital or critical pillar to strength of a country's economy. Public sectors enterprises are started in order to fabricate infrastructure for attaining economic growth and development (Crane and Matten, 2016). Such organisations are implemented, managed and controlled by central government of UK having 100% in it.

For example – DCMS (department for digital, cultural, media and sport) is UK government organisation which is responsible for managing cultural and sport in England. In context of media, DCMS provide internet and broadcasting services.

Legal structure-

• Departmental management – These undertakings are wholly dependent upon government and its associated bodies for finance. State and local treasury provides finances where surplus money is deposited in treasury.
• Public corporation – These sectors are created by a specific aim of state and central government. A public sector corporation has a separate legal entity to attain specific purpose. They can also raise loans separately (Gharajedaghi, 2011).

Private sector organisations - These associations are defined those firms in which factors of production is owned by an individual and by the group of persons with an aim of profit maximisation. Private sector is focused on creating new and innovative products thus to high customer satisfaction.

For example – WALMART is leading chain of grocery and retail products area severed worldwide; the firm was founded in 1962. As of January, 2016 company has 12000 stores in 28 countries.

Legal structure

• Sole proprietor – It is one of the simplest form of organisations which requires minimum capital for start up. In sole proprietor business, profits and business incomes are personal income of owner and they are liable for all profits and taxes within organisation (Gilboy,  2016).
• Partnership – Its a business in which two or more respondents are equally liable for all profits and losses. In partnership, members invest their money as per the terms and conditions of partnership deed.

Voluntary sector organisation – These sectors are usually comprised with an aim to benefit and enrich society thus to improve their living standards. Voluntary sectors focuses on delivering qualitative and value added services to people for their growth and development.

For example – Wellcome trust is a biomedical charity that is based in London. The firm was founded in 1936 with an aim to fund research activities for improving animal and human health.

Legal structure

• Trusts – It governed and controlled by a trust deed which sets out aims and objectives of a charity (Kian Chong, Shafaghi and Leing Tan, 2011).
• Industrial and Provident Society (IPS) – An IPS is a society that is developed by an industry or business for benefits of a local community.

You can also read this: Various Models and Systems Used in Business Communication 
Planning of Various Operations in Organisations
Unit 4 International Marketing Regent College

P2 Size and scope of business organisations

On the basis of size and scope business entities are classified into three parts, such as -

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