How Business Operate

HOW BUSINESS OPERATE

Table of Contents
TASK 1 - The Business Environment
TASK 5 – Customer Service

1.1 Discussing types of organisations found in public
and private sectors in UK
• The public sector organisations in UK are direct
administration company funded through the taxes garnered by
government and thus, production is met without having view
to attain profits.
• The example is NHS which is funded by direct taxation.
• Another type of organisation is state-owned entities which are
purely owned by concerned states and exercises full control
over company.
• However, this type of public organisation differs from direct
administration as profit earning is main motive and partial
control is observed by the government.

Cont.
• The private sector organisations are sole proprietorship,
partnership, limited companies etc.
• The partnership is formed by two or more partners which
share profit and losses on equal basis.
• Sole proprietors are only owners of business and as such, have
limited liability.
• The limited companies are funded with the help of
shareholders who subscribes for its shares.
• Shareholders have limited liability as they are liable to pay for
quantum of shares held.
• M&S is a private firm.