P1 describe the type of business, purpose and ownership of two contrasting businesses. For this assignment I am going to select two businesses, one which will be local and not-for-profit organization and the second will be an international business and for profit. The two businesses I have chosen to use for this task are Asda Stores Ltd. and Welcare, Reigate.
Type of Business:
Asda Stores Limited, commonly known as ASDA, is the second largest retail store and a national public limited company. It is a profitable business and it is the subsidiary of American company Wal-Mart. It was founded in 1949. Furthermore as Asda is a profitable business it is also in the private sector. Welcare is a local charitable, non-profit organization.
They earn no profit out of their work however do accept forms of donations and fundraisers. The charity was set up by a church over 100 years ago. It was originally founded in 1894. Furthermore as it a nonprofit business and is giving service it is in the public sector. Purpose of the business:
A charity is a group of profitable people whose aim is to give a service and help those in need. Welcare charity provides services which include social work and family support, support groups and life skill workshops and also a children’s health clinic. They work to keep families together, and encourage parents to give their children a happier childhood.
Asda is a retail supermarket and the purposed of Asda is to make profit and to supply goods to customers. It sells general merchandise such as food, drink, clothing and various other items. It also has services such as insurance, financial services and a mobile telephone network. Business Ownership and level of liability:
Asda was founded by Associated Dairies & Farm Stores Limited in 1949. This is situated in Leeds. The company has limited liability, therefore any debts within the company are paid by shareholders investment and this means the owner wouldn’t have to sell their assets and belonging to pay the debt. Being a shareholding company you can freely sell shares, this is an easy way to have money contributed to the company.
Welcare was founded in 1894, and was originally called The Diocesan Association for the Care of Friendless Girls. This company has limited liability, this means any debt is paid for and the owners do not have to sell any assets.