Assessment Title: Assignment 1
Unit Title: Exploring Business Activity
In this assignment I am going to choose two contrasting types of business organisation in two different sectors, I have chosen the private sector and the public sector and then I am going to carry out an investigation of the chosen businesses.
The companies I have chosen are American Fried Chicken (AFC) which is in the private sector and the other company is Barnsley College which is in the public sector.
These two companies have a huge contrasting between them, I am going to start with American Fried Chicken York LTD, the company is located in Barnsley, the business activity of the company is local, it only has one shop which can only serve local customers, but in 1987 it came up with the idea of delivering service to homes which increased its business activity as it then can serve more villages in Barnsley. AFC is in the private sector, as it has a private individual owner, the control of the business is held by the director, the capital is provided by the owner, the use of the profits the business makes is used by the owner which uses on improvements, quality lifestyle like holidays or buying new cars etc, and lastly the aim of the company is to make the highest profit as possible. These make the business in the private sector, the way businesses are classed in different sectors are depending on the way it runs, the purposes and aims of the business.
There are lots of different types of business ownership in the private sector, AFC is a private limited company; it is owned by a major shareholder which also controls it as a director, it has limited liability and more continuity than smaller businesses which is a advantage of being a private limited company, but it cannot offer shares to the public which limits the amount of capital raising which this is a disadvantage, AFC has all the documents to make it a private limited company which are; memorandum of association,...