Business Environment - GlaxoSmithKline

TASK 1

P1 Different Purposes and types of businesses

It can be said that there are different types and purpose of business with various sectors, size, scope and structure effectively. Different types such as partnership, sole trader, public, private and voluntary businesses. Organisations can be described as a group of people which helps to achieve desired goals and objectives. In respect to this, private sector works for earning profitability and to expand their business activities. Public sector is managed and controlled by government. Voluntary businesses are known as non-profit firms which is managed and controlled by both local authorities and government.

Sole trader: Sole trader refers to the business which is managed and controlled by one person individually. He or she is responsible for managing all the operational activities of firm in order to earn profits. Such traders usually earn less profit that the size and scope of business is small. The resources are managed by funding from savings, bank loans and overdraft plus profit.

Partnership: A business which is run by two or more than two people with common objective and goals is known as partnership firm. People are able to share their views, knowledge and skills. The profits and losses are divided equally or according to the investment ratio made by partners. They also try to expand business activities that the scope and size of such businesses are less than private sector businesses effectively.

Private sector: Private businesses are managed and controlled by persons in order to provide goods and services to customers in the market. These businesses work for earning profitability in order to expand operational activities. Private businesses can be small or large in nature, scope as well as in size. Such firms works under the rules and regulations formulated by government in order to manage and control activities. Strategies and plans are managed by management in order to earn profits and productivity that helps to achieve desired goals and objectives.

Public sector: These are the main part of economic concerns which provides various products and services to those who are not able to purchase them effectively. These are the non-profit organisations which provides goods to the welfare of societies. There are different types of services provided by these firms such as education facilities, health and safety care, water and electricity supply and telecommunication services efficiently. Public sector businesses are managed and controlled by both government and local people in order to provide services with low costs that helps to improve and develop societies. These are also organised at three levels which is federal, regional and national.

Voluntary sector: Different types of businesses are included in voluntary sectors such as communities, charity and voluntary business. These are also non-profit organisation in which there is no role of government body. Such enterprises are dedicated to provide goods and services which they are not able to catch them effectively. These can be incorporated or unincorporated and defined as third sector which helps to improve and develop economy of particular nation. This will also help to increase employment opportunities. Voluntary sector examples such as social business, general charities, community interest, public art business, faith groups, housing association and societies.

TASK 2

P2 size, scope and range of different types of businesses

UPTO56%

Avail The Benefit Today!

To View this & another 50000+ free

Enter Email

Submit