Influence of economic, legal and social factors on business activities
Added on 2020-02-03
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The Business Environment
TABLE OF CONTENTSINTRODUCTION ..........................................................................................................................3TASK 1 ...........................................................................................................................................3P1) Types of business, purpose and ownership ..........................................................................3P2) Different types of stakeholders.............................................................................................4TASK 2 ...........................................................................................................................................5P3) Organising businesses in terms of structure and functioning ...............................................5P4) Style of organisation and its contribution in fulfilling purpose............................................6TASK 3 ...........................................................................................................................................7P5) Influence of two contrasting economic environments on the business activities ................7TASK 4 ...........................................................................................................................................7P6) Influence of political, legal and social factors.......................................................................7CONCLUSION................................................................................................................................8References........................................................................................................................................92
INTRODUCTION The definition of business environment means all of the internal and external factors thataffect how the company functions including employees, customers, management, supply anddemand and business regulations. In this report, types of business, purpose and ownership ,different types of stakeholders, Organising businesses in terms of structure and functioning, Styleof organisation and its contribution in fulfilling purpose have been discussed. Furthermore,Influence of two economic environments on the business activities and Influence of political,legal and social factors on the two given businesses has been elaborated. TASK 1 P1) Types of business, purpose and ownership A sole trader describes any business that is owned and controlled by one person, althoughthey may employ workers, eg a newsagent's shop. Individuals who provide a specialist servicelike hairdressers, plumbers or photographers, are also sole traders. Sole traders do not have aseparate legal existence from their owner (Johnson and Scholes, 2003). As a result, the ownersare personally liable for the firm's debts, and may have to pay them out of their own pocket. AdvantagesThe firms are usually small, and easy to set up.Generally, only a small amount of capital needs to be invested, which reduces the initialstart-up cost.The wage bill will usually be low, because there a few or no employees.It is easier to keep overall control, because the owner has a hands-on approach to runningthe business and can make decisions without consulting anyone else (Hall,2012).DisadvantagesThe sole trader has no one to share the responsibility of running the business with. Agood hairdresser, for example, may not be very good at handling the accounts.Sole traders often work long hours and find it difficult to take holidays, or time off if theyare ill.Developing the business is also limited by the amount of capital personally available(Williamson, et al, 2004).3
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