How Businesses Operate: Importance of Accounting, HR Functions, Employment Legislations, Profit and Loss Interpretation, Team Analysis

This report explores how businesses operate, covering topics such as the importance of accounting for business success, different functions performed by the HR department, features of employment legislations, interpretation of profit and loss account statement, and analysis of an individual's role in a team. It provides insights into the various aspects of business operations and their significance in achieving success.

Unit 3.23 How Businesses
Operate

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 2............................................................................................................................................1
Explain importance of accounting for business success.............................................................1
Different functions performed by HR department in a business. ...............................................2
Features of employment legislations...........................................................................................2
TASK 3............................................................................................................................................2
Interpretation of information of profit and loss account statement.............................................2
TASK 4............................................................................................................................................3
Analysis to determine individual's role in a team with results....................................................3
Detailed notes that could be used to support training events......................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business environment is defined as a summation total of all aspects outside to business
companies and which it greatly influence their functioning. It basically covers aspects and forces
such as customers, competitors, government, social, political, technological, suppliers and legal
conditions. Business surroundings generally helps in determining tapping useful resources,
assists in planning and improves overall performance, profitability, opportunities, and growth.
There are different kinds of business environment such as micro as well as macro
environment(Sun, Wu, and Yang, 2018). Business environment consists owners, activities by
government, innovation in technology, market trends, economic changes, clients, suppliers,
social trends,etc. These aspects affect the function of the company and how a company works
directly or indirectly. Addition of these aspects influences the companies as well as business
organisations environment or situation. This report is based on how business operates which
implies various activities that are to be taken in operating business. This report includes business
functions, accounting workshop, teams along with its conclusion.
MAIN BODY
TASK 2
Explain importance of accounting for business success.
Accounting plays a important duty in carrying a businesses as it helps to examine income
as well as expenditures, expenses, ensures statutory compliance or provide investors,
management as well as government with quantitative financial data which could be used in
taking business decisions (Cosenz and Noto, 2018) . Importance of accounting for success in
terns of Marks and Spencer as an example are as follows: It helps in analysing of business performance: As financial records reflects outcomes of
operations and financial position of businesses and corporation. Accounting in business
helps in understanding what is going with their business financially. It ensures statutory compliance: Accounting systems helps businesses to ensure
statutory compliance. Accounting role will ensure that liabilities like sales tax, pension
funds and income tax which are specifically addressed.
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 Helps in creating budget as well as future projections: Budgeting or future projections
can generally make as well as break their business. Business trends and projections are
associated on historical financial data to keep their operations.
Different functions performed by HR department in a business.
Human resource department could provide company with structure or ability to fulfil
business requirements by managing company most important and valuable resources. Some
functions of human resource department are as follows:
 Recruiting right individual for right job.
 Maintaining a safe environment.
 Building and enhancing employer employee relations(Moeran, 2021) .
 Providing compensation and benefits.
 Providing training and development to its employees.
Features of employment legislations.
Employment legislations is referred to treating and carrying employees equally. It
determines various employment conditions as well as terms like working hours, holidays,
procedure for termination of employment and leave settlements. Taking up example of Marks
and Spencer, features of employment legislations are as follows:
 Treating and examining employees on basis of their work and skills.
 Protection of their rights and equality.
 Building equal employment relationships .
 Providing equal wages and remunerations.
 Providing trade unions and industrial relations.
TASK 3
Interpretation of information of profit and loss account statement.
Profits & loss statement refers to a financial statement which summarizes revenues, cost
or expenses which are incurred during a particular period. Profit & loss statement is also
referred as income statement(Boone, Kurtz and Berston, 2019) . These records and data
provides information about company's ability or inability to build profits by enhancing revenues
as well as reducing costs. Profit or loss statement is a statement of profit and loss, income
statement of profits as well as loss, statement of operations and financial results or income.
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Interpretation: From above profit and loss statement it has been analysed that there are
various transactions from which it has been divided into income and expenses and states that
there is profit earned by business.
TASK 4
Analysis to determine individual's role in a team with results.
Team is referred as a organisational group of individuals which are staff members of
businesses. A team is designed of members that are dependent on each other, work towards
interchangeable accomplishments or share their common achievement. A team works as a whole
together to accomplish business's goals and objectives effectively and efficiently. Primary
function of team is to combine resources, competencies, skills or bandwidth to accomplish
company's success. As team members brings a diverse view to a group that promotes wide
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accuracy, adaptability as well as resolution development. Role of individual in a team are as
follows: Adaptability: An individual is able to carry its business practices effectively by having
adaptability towards business's operations and their management. By having adaptability
in teams individuals will be able to learn and gather information in a better way and that
leads to achievement or company's goals and objectives(Ghezzi and Cavallo, 2020) .
 Strategic development: It helps in building individual's strategic development of teams in
business. As carrying team in an effective and efficient manner it helps teams in having
strategic development of teams as well as businesses.
Detailed notes that could be used to support training events.
Team development is referred as a work together efficiently. As taking up example of
Marks and Spencer, there are basically five stages of team development that are forming that
consists a period of orientation or getting acquainted, storming which is basically marked by
conflict or competition as individual personalities that are emerged, norming which conflicts are
solved or some degree of unity emerges., performing that relates in consensus and cooperation
that has established when team is able to determine and carry their work and adjourning in
which goals and objectives of businesses are achieved(Prybila and et. al. 2020) .
Motivation refers to a method that initiates, directs and maintains goal oriented
behaviours. It refers to willingness to accomplish desired and planned goals. For that there are
various theories of Motivation in which Maslow's hierarchy need theory defines that employees
are get motivated according to five level needs that essential needs which are clothes, shelter and
food, security needs that implies in having safety and security, social needs that relates to love
and belonging needs, self esteem needs that relates to self prestige and lastly self actualisation
needs that relates to carry self pride.
Leadership is said as a process by which an executive could organise, guide or influence
behaviour or work of employees in business with a view to accomplish its desired goals and
objectives(D'Amato, Veijonaho, and Toppinen, 2020). There are various leadership styles that
are used by businesses and some leadership styles are democratic that states that leader is
considered to be boss of employees who influences there behaviours, free laissez leadership
style in which employees and leaders works by their mutual concerns.
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CONCLUSION
From above it has been concluded that business environment is an important element of
business which is required to be performed for running business practices effectively. As it states
about surroundings of micro as well as macro environment. This report states about factors
which is requited to carry business practices effectively. This report carries a brief explanation
about business functions which is required to be analysed by business in order to carry business
practices effectively. There is accounting workshop carried with business will be able to
determine its accounting and profits and loss workshops. With that this report carries brief
explanation of teams which is required to carry business practices effectively in markets in order
to earn profits and generate revenues for them.
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REFERENCES
Books and Journals
Boone, L.E., Kurtz, D.L. and Berston, S., 2019. Contemporary business. John Wiley & Sons.
Cosenz, F. and Noto, G., 2018. A dynamic business modelling approach to design and
experiment new business venture strategies. Long Range Planning .51(1). pp.127-140.
D'Amato, D., Veijonaho, S. and Toppinen, A., 2020. Towards sustainability? Forest-based
circular bioeconomy business models in Finnish SMEs. Forest policy and
economics, .110. p.101848.
Ghezzi, A. and Cavallo, A., 2020. Agile business model innovation in digital entrepreneurship:
Lean startup approaches. Journal of business research ,110. pp.519-537.
Moeran, B., 2021. The business of ethnography: Strategic exchanges, people and organizations.
Routledge.
Prybila, C., and et. al. ,2020. Runtime verification for business processes utilizing the Bitcoin
blockchain. Future Generation Computer Systems, 107, pp.816-831.
Sun, J., Wu, S. and Yang, K., 2018. An ecosystemic framework for business sustainability.
Business Horizons .61 (1). pp.59-72.
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