Business Environment
1.1 Identify the purposes of different types of organisations. Define Anglo American in terms of organisational purpose.
A business can be owned by an individual or many, there are different types of ownership and their objectives. Most organisations big or little will aim to make a profit, government run and charities main objective will be not to make a profit but will need to make some in order to survive. There are many types of businesses, sole traders, partnerships, private limited companies and public limited companies and franchises.
Sole Traders
A Sole trader is a business owned by one person, and is the most popular type of business in the UK, a sole trader may employ another person or more, this type of business is easy to set up, with not much paper work involved and minimal capital. Many sole traders will deliver a service, such as a hairdresser or a cleaner, some will supply products such a market trader or chicken and chips shop. An advantage of a sole trader is that they will have complete control over their business, meaning all profit is kept by them. Disadvantages include having to work long hours and holidays are hard to take and illness covered. The sole trader is also responsible for covering all business debts. (Edexcel, 2013)
Partnerships
A Partnership can be owned by two or more people. The purpose of a partnership will be the same as that of a sole trader, to provide a service or product. Famously, Waitrose began as a small grocery store in Acton, West London, between Wallace Waite, Arthur Rose and David Taylor, in 1904. The company grew to the Waitrose we know today. As with partnerships, where one person is good with the business side of things, the accounting for example, the other person may have the skills such as an hairdresser, this coupling together provides the business with benefits of varied expertise and other resources, including more money, it’s easier to take holidays or someone to...