1. L2 Business Unit 1 – Business Purposes
P1: Identify the purpose of four different business organisations

2. Learning objectives/intentions
To know the purpose of private sector organisations
To know the purpose of public sector organisations
To know the purpose of NGO organisations

3. Private sector organisations Part 1
Private ownership: Purpose to make a profit for the owner/s
Different types of Business ownership
Sole trader
simple to set up.
Profits and losses the owners
Got to inform HMRC within 3 months
Pay tax and National Insurance Contributions
Partnership: Like a sole trader. One partner can end up personally liable…

4. Private sector organisations Part 2
Co-operative
Getting popular again
. All sharing decisions etc
= shared decisions and profits
Normally small:
Can be large:
Can be difficult if people not all wanting the same thing

5. Private sector organisations Part 3
Private Limited Company (Ltd)
New owners invited to join
Costs about £100 to set up
Can claim Tax back on items bought (=20% cash back)
Share liabilities between owners (not personally liable = company debts)
Public Limited Company (plc) similar to Ltd but
Shares sold to anyone
Expensive to set up (costs millions to ‘float’ on stock market

6. Business Ownership Part 4: N.G.O
Charity/Voluntary Organisations
Provide benefits for group/s in society
Money made goes on projects not to owners
Often volunteers rather than paid staff
Charities: From small and local centre.vpweb.co.uk
Massive and international

7. Business ownership part 5 Public Sector
Purpose To help the population
Run by the government on behalf of the country
Public sector = The government
Departments, agencies and public bodies
Departments: run by Minister who bids for money each budget
Local authorities: Local councils provide community services which depend on the size and type of area.
Public corporations = expected to make a profit like BBC