Unit 18 How Business Operate Assignment Regent College Level 5

Task 1

1.1 Classification of business on the basis of public and private sectors

Public sector organisation are divided on the basis of state and central basis. Institutes in this sector are comes under control of government and managed by either inter department committee or through concerned minister. Therefore, due to control of regulatory bodies, these firms can operated their business easily by achieving economic, political and social objectives of a country (Reim, Parida and Örtqvist, 2015). While private companies are distributed on the basis of ownership- individual, partnership and joint stock depends on size of business. Government has no control on these firms, therefore, making the business globalise is not an easy task for their management.

1.2 Structures within the business of Public and Private Companies

Structures of the business of companies in UK are divided on the basis of-

Sole Proprietorship: This type of company consist of a single owner which shares both risk and profit with no one. Legally these firms enjoys the most and run their business with simple approaches as they do not have make alterations because of different partners.

General Partnership: Under this category firms mostly have owners more than one. Agreement is being done among partners and it totally depends on them as sometimes it has been located that capital was implemented by one partner then another.

Limited Partnership: Under this, partners shares both risks and profits as well. Agreements which has been done in between people who have done a start up should be properly elaborated among them so that no issues can take place in upcoming future.

Corporations: Generating heavy revenue is the main aim of this sort of companies they follows all the rules and regulations which has been made by a government of United Kingdom.

Non-Profit corporations: These are firms which manufactures or offers products and services in order to enhance standardisation of citizens of United Kingdom. They do not look for making profit when they deliver commodities to people.

United Kingdom's government had divided these firms in two different sectors and these are public and private which is put both positive and negative impact on economical condition.

1.3 Implications on business at local, national and global economic environment

Morrison is retail company of UK which operates its business in almost many locations of UK. It has 498 stores having more than more than 10,000 number of employees working there. It sells products like electronic goods, home appliances and more in national and international market. Due to high commitment of employees, it runs the business in an effective way. Due to political and legal factors, business of this firm affected in following way:

Political Factors: Since every company has own rules and regulation, therefore, before moving business to international level, it is necessary for organisation to follow legislation of regions. This will help in running business in legal manner. Along with this, due to change in laws, management of industries are needed to modify their strategies on regular basis.

Economic Policy: Economical condition of a country affects much on sales performance and business in a wide manner either in positive or negative way (Petro and Gardiner, 2015). In the period of inflation, income of persons becomes high so they can purchase commodities on any price similarly at the time of deflation, this process becomes ineffective. Along with this interest and tax rates also affects business.