Description of Two Types of Businesses, Identifying Stakeholders and Economic Environment

Topics: Economics, Corporation, Sole proprietorship Pages: 11 (3600 words) Published: March 19, 2013
Task 1.1

Our local corner shop
This type of business is in the tertiary sector which is a profit making business. All of the products which they sell are given to by their suppliers from public companies. The owner of the business buys the products in bulk in order to make profit. However, they do not make as much profit because most of the money goes back to their suppliers and bills. This business is owned by a sole trader so all of the profit is in his hand. In this circumstance, this business is owned by a family so it would be counted as a partnership but they are put themselves down as a sole trader. The profit which is being earned is shared out between the family. Last month they had hired an employee so they can cut down the shifts to smaller hours. The size of this business is small but they are interested in making chains around the city in order to make larger profits. What is a business that is in the tertiary sector?

Businesses which are in the tertiary sector mean they provide/sell services and products. The business which I have chosen is in the tertiary sector as they sell goods to our local community. What are they aiming for?

In my report, I have interviewed the owner of the business and had asked him what the aim of his business was. He had said, as I quote “We aim to help our local community get their daily/essential products in one store near them”. To create a successful business, they have to provide the right products at the right time. For example, if they were out of newspapers in the morning, the local customers wouldn’t be happy with their shop and would go to another one. What are the risks and benefits of being a sole trader?

Being a sole trader is counted as a risky way of owning a business; however it does have its perks. * Owning your own business means that all the profit earned will be given to the sole trader. * The business can fit your time schedule.

* The business is run to your liking.
* You can keep control of your business.
* There is no decision making with other people as it is your own business. What are the disadvantages of being a sole trader?
* You will have unlimited liability, so if in debt, you are liable to your own personal assets being taken by force and then sold until the amount of money has been made. * You would have to organise everything in order to make a successful running business which would take a lot of effort and time. This may result in problems in the future if you have no help. * The decision making is made by only one person so the success or the failure of the business relies on the sole trader. Who are the stakeholders of the local corner shop?

* Staff
* Customers
* Suppliers
* Government

What are stakeholders and how do they influence businesses?
Stakeholders are people who have any input or interested with the business. This would mean that if a customer would buy a product from a shop, they would be counted as a stakeholder as they are involved with the business.

The “NHS” stands for the National Health Service, which is located all over Britain. This huge organisation is largely funded by the public and by the government which makes it a public limited company (PLC) and is very successful one, as the service is provides are in high demands. What kind of services does the NHS provide?

The name of the health care system informs us that this organisation provides services to the whole of the United Kingdom. Providing services means that the NHS is in the tertiary sector. In the NHS, they provide free services to the British who are ill. However, it costs money for foreigners to acquire the services they provide. PLC

PLC stands for public limited company. The NHS is a PLC so they get public funded by the public in order to meet their financial criteria. They are also given sufficient funds by the government so they survive. Being a limited company means that if they are in...
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