Why do People Work? Why be in Business?

Topics: Maslow's hierarchy of needs, Employment, Corporation Pages: 6 (1857 words) Published: October 14, 2013
In my investigation I will investigate reasons why people work and why people would be in business. I will investigate advantages and disadvantages looking at limited companies to being self employed and working within the public and private sector’s. My Investigation will be mainly constructed around my parents. My dad was a self employed builder for about fifteen years and has in the last few years become a limited company. My mum is a personal services assistant for the NHS and has been for around eight years. I am going to look at the good and bad points about working in both the public sector i.e. NHS and private sector i.e. Builder. I shall look into factors which may affect why my parents have chosen these career paths and how they benefit from it. I will look at Maslow’s theory and decide at which level upon it I consider them to be at in motivational terms. Also I will investigate a range of other factors including how it was beneficiary for my dad to become a limited company.

For my investigation I will be using the internet, books and interviews to gain information.

What is a business?

Appendices page 7.

What does a business do?

In this I am going to discuss how my dad as a builder makes money in his business. The majority of people that are in business are in it for profit making purposes.

My dad in most cases would be responsible for providing the materials as well as the labour to complete a job. He employs workers and pays them on an hourly rate and charges them out at a much higher rate to his customers so each individual that works for him he makes money upon.

What is a limited company?

Appendices page 7.

Why become a limited company? (Page 3 of the appendices)

The principal benefit of trading as a limited company has always been the limited liability bestowed upon the company's officers and shareholders. As a sole trader or other non limited business, personal assets such as your house or car are at risk in the event of failure of the business, but this is not the case for a limited company. As long as the business is operated legally and within the terms of the Companies Act, directors' or shareholders' personal assets are not at risk. The first £10,000 of a limited company's profit is tax free. This is not the case for sole traders and partnerships. Company profits may be distributed as dividends to shareholders. Presently, National Insurance is not applicable to dividend payments, effectively reducing your tax liability still further. Operating as a limited company often gives suppliers and customers a sense of confidence in a business. Often, larger organisations in particular will prefer to deal with limited businesses rather than non limited businesses.

What is work?

Appendices page 7.

What is being self employed?
If you’re self-employed, you do not have a contract of employment with an employer. You are more likely to be contracted to provide services over a certain period of time for a fee and be in business in your own right. You will also be responsible for paying your own tax and National Insurance Contributions (NIC). You do not have employment rights as such if you're self-employed since you are your own boss and can therefore decide, for example, how much to charge for your work and how much holiday to give yourself. You do however have some legal protection. Why be self employed? (Page 1 of the appendices)

I also interviewed people as well as use the internet to gather info to respond to this question, page two of the appendices shows the format in which I interviewed people.

There are a number of advantages to being self employed:

You are your own boss therefore you can dictate your working environment, when in control of your working environment you can pick and choose between areas which you may foresee as more physically demanding or which you consider have less potential to make money on. You have full control over which hours...
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