Business

Topics: Tertiary sector of the economy, Economics, Economy Pages: 5 (1101 words) Published: October 14, 2014
Unit 1 M1 & M2
M1 Contrast the ownership and purposes of two different business organisations

M2 Compare areas of growth or decline in the primary, secondary and tertiary classifications of business activities.

For M1 and M2 you have been asked to complete the tables below to be used in an information leaflet about businesses.

M1:

What is their ownership type and purpose?
Why are franchises and charities the same or different?
Business number one:
KFC

What type of ownership does this business have? Explain this type of ownership in detail. To open and run up a business that is already open is a Franchise. A Franchise is when a franchisee asks a franchisor if they are allowed to sell their products and use their company name. What are the positives of this type of ownership?

One of the advantages of this is that other banks would like to give money or loans to Franchise. Another positive aspect of this is that they make a profit of 91% in their reports. Also they are much known and as a result the business format is proven and is fully established. What are the disadvantages and of this type of ownership? One disadvantage is that they are required to invest in a very large financial investment. An example could be £100,000. Another disadvantage about a Franchise is that you have to pay the franchisor a percentage of your profit. Also you will have no guarantee to work which isn’t very good. What is the purpose of the business?

The purpose of this Franchise is that they compete with other businesses and they have good quality items and services they provide for the customers. Another purpose is that they are there for a profit. They also have easily and recognisable products and services that they provide. Business number one KFC is similar to business number two Oxfam because they both provide products and services to customers and the public.

Business number one KFC is different to business number two Oxfam because KFC are for profit the money they get they keep for themselves whereas Oxfam are not for profit, the money they get is for the people in need not for them.

Business number two: Oxfam

What type of ownership does this business have? Explain this type of ownership in detail. A charity is an organization set up to provide help and raise money for those in need. A charity is not run for profit. What are the positives and of this type of ownership?

An advantage of this is that they help the people that are less vulnerable and don’t have anything. Also the people that need help get the best aid and they get lots of donations from different companies. Another positive aspect is that the volunteers offer their help for free. What are the Negatives and of this type of ownership?

The negative aspect of this is that they only depend on the volunteers, money they get and the aid. Another disadvantage of Charities is that they cannot ask for loans from other businesses and banks because they are a charity. What is the purpose of the business?

The purpose of this is that they help the ones in need. They have material and essentials that they provide to the poor and the money that they get goes to buying materials/food for the poor or building new homes or health centres. Another purpose of them is that they make awareness of how the poor are suffering and how you can stop or help the suffering.

M2:

Is the economy growing in the UK or not? Nationally and locally? Explain why you think the economy is/is not growing
Primary sector
The national economy 50 years ago was 67% this suggests that the national economy was very high at that time. The national economy 10 years ago was 3% this suggests that the national economy ten years ago was very low. The national economy now is 2% this suggests that the national economy now is extremely low. Has it grown? No it has not grown but shrunken.

How has the local economy changed in the last 12 years?
Yes the economy has changed in...
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