Btec Business Unit
As a business advisor I have been asked by my headquarters to investigate two businesses within my area. My research will be used to make a judgement as to how the business will be affected by the worsening economic climate. The two businesses that I have been asked to look are: 1. Intouch Foundation 2. Tesco Plc. http://intouchfoundation. co. uk/grid01. jpg Intouch Foundation Intouch Foundation is a charity. This business is a not for profit, this is because it is a charity. This business is usually run on donation.
A not for profit business is a business which is run for a good a cause and is founded on the basis of helping the homeless. Intouch falls in the tertiary sector because it is providing a service for the homeless. This is done by feeding the homeless in towns and by using their own mobile kitchens. This business is local as it only helps the homeless in different parts of Bradford such as Keighley. The purposes of Intouch foundation are to provide a service. This is done by serving meals to the needy. The second purpose is to expand, the business wants to expand to Leeds and start providing over there.
This was listed on their website. The third purpose is to prevent or relive the homeless form poverty and hunger. To raise awareness to the public about the homeless. They do this by radio adverts and using their website (http://intouchfoundation. co. uk/ ) The Charity is not owned by someone, it is run by trustees by a trust deed. Trustees are people who administrator the charity solely for the purposes that they are based on. Advantages: The trustees make decisions together which means that there will be a less chance of making mistakes.
The business has no liability because it is set up as a not for profit business. There is a double advantage in that registered charities enjoy certain tax exemptions, and there are tax reliefs for taxpayers who make donations to charity. Charities have a higher chance of getting funds from the government. Disadvantages: Charities will have to produce an annual report to the charity commission stating all accounts and other relevant information. If a trustee does something wrong then they are liable to personal liability. There is a lot of paperwork involved in a charity.