P1 Business Unit1

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Unit 1: Unit code: QCF Level 2: Credit value: Business Purposes L/502/5244 BTEC First 5 Guided learning hours: 30 Aim and purpose The aim of this unit is to enable learners to understand the nature of business organisations and the business environment in which they operate. Learners will do this by looking at the range of organisations that exist locally, regionally and nationally and by considering the business framework in which they operate. There will be a particular focus on businesses in the local context with which learners will be familiar. Unit introduction The wealth of the nation is created through business activity. The term ‘business’ is used to cover organisations as diverse as multinational companies and small local businesses, as well as organisations in the voluntary sector. Businesses have a wide range of purposes. Some supply goods and services, others manufacture goods. Some want to make profits to satisfy their shareholders, others do not. Businesses contribute to the national wellbeing and the unit considers the purposes of these different businesses. Businesses are organised differently. The largest businesses operate globally. Others may wish to remain small and free from too much legal control. The smallest businesses, for example, individuals providing an ironing or gardening service, may be run from the owner’s home and have a limited sphere of operation. Learners will look at how businesses are classified in terms of their activities and will consider the relative importance of each by looking at the local economy. Businesses do not operate in a vacuum. The government sets the business context. Account has to be taken of the requirements of the European Union in areas such as competition. In general terms, the government wants to create a business framework in which businesses and individuals can flourish. Learners will look at some
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