Assignment front sheet |
Learner name | -------------------------------------------------
Assessor name |
Thaw Thaw Han | Daw Kyi Lai Han |
Date issued | Completion date | Submitted on |
17.11.2014 | 2.1.2015 | 2.1.2015 |
Qualification | Unit number and title |
Edexcel BTEC Level 4 HNC Diploma in Business | Unit 3 – Business Environment (EDEXCEL Unit – 1) |
A | |
Assignment title | Business Environment (Assignment 1 of 1) |
In this assessment you will have opportunities to provide evidence against the following criteria. a
Indicate the page numbers where the evidence can be found. |
...view middle of the document...
3 | Evaluate the impact of policies of the European Union on UK business organizations | 4 | |
Learner declaration |
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged Learner signature: Date:2.1.2015 |
1.1: Identify the purposes of different types of organization
There are many different types of organization that are set up a number of different purposes and to meet a variety of needs. There are business formats including sole trader, partnership, private limited company and public limited company by different types of ownership form, control level, its activities, and the purposes, the legal requirements of setting up, size and sources of finance. Sole trader is a business owned by one person. Partnership is two or more person associated for a business or profession. Companies or corporations are distinct artificial person created in order to separate legal responsibility for the affair of a business from the personal affair of the individuals who own or operate it.
According to Friedman, 1970, the corporation a free –enterprise, private-property system, a corporate executives an employee of the owners of the business. He has direct responsibility to his employers. That responsibility is to conduct the business in accordance with their desire, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom. As a nexus of legal contracts between the suppliers of various factors of production, who agree to cooperate in order to generate monetary returns? These agreements specify that, in exchange for their contributions, the owners of most factors of production-labor, land, intellectual property rights, and etc.-will receive set payments with little risk. Shareholders-the suppliers of capital-accept the residual financial risk of doing business, and in return receive the residual profits. Since shareholder s have no contractual guarantee of a fixed payment from the firm’s activities, any profits that are diverted towards other activities, such as pursuit of ‘the social good’, come directly out of their pockets. (investopedia, 2014)
They are supposed to try to maximize profits over the long run but there may be other objectives imposed by stakeholders other than shareholders. The purpose of the organization is to accomplish the goal and objectives as indicated ethic the organization’s vision statement. There are the differences of purposes between public and private sector. Public sector organization is usually set up for personal gain and funded by shares issued, loans from banks, overdrafts etc. Public sector organization are usually set up in the interests of the community and are funded wholly or partly by the government from public funds and are answerable to a government department or the treasury. All organizations are affected by the...