Unit 1 – The Business Environment
P1 – Overview of two businesses
Jaguar Land Rover is a Public Limited Company, as stocks for both companies are available
on the stock market.
A company is a business which is, in most cases, large, sells stocks on the stock market as
well as paying a larger amount of taxes.
These taxes are:
● Corporation Tax - 20% of company profits
● Income Tax - 20-45% dependant on income
● VAT -20% for all sales. Can be claimed back on certain vehicles
● National Insurance -12% between £8060 - £43,000, then 2% afterwhich.
The Income tax and National Insurance Contribution are collected through Pay As You Earn
(PAYE)
A company is also a separate legal entity, meaning that it has to comply with more
regulations, however, the owner has much more protection due to a company having liability
protection, meaning if Jaguar Land Rover had a debt of £10 billion and closed, Tata would
not have to pay this debt. Simply, personal assets are not at risk.
The limited liability also transfers over to the shareholders, as money is gained if profits are
made, however, as the business is a legal entity, if the company closes down, the
shareholders cannot be charged. They can lose only the amount they have invested
themselves.
A company also has a board of directors. This is a group of elected or appointed members
who oversee the activity of the business.
In a company boards are elected due to their previous experiences.
The whole of the Jaguar Land Rover board have previous experience directing other
companies.
P1 – Overview of two businesses
Jaguar Land Rover is a Public Limited Company, as stocks for both companies are available
on the stock market.
A company is a business which is, in most cases, large, sells stocks on the stock market as
well as paying a larger amount of taxes.
These taxes are:
● Corporation Tax - 20% of company profits
● Income Tax - 20-45% dependant on income
● VAT -20% for all sales. Can be claimed back on certain vehicles
● National Insurance -12% between £8060 - £43,000, then 2% afterwhich.
The Income tax and National Insurance Contribution are collected through Pay As You Earn
(PAYE)
A company is also a separate legal entity, meaning that it has to comply with more
regulations, however, the owner has much more protection due to a company having liability
protection, meaning if Jaguar Land Rover had a debt of £10 billion and closed, Tata would
not have to pay this debt. Simply, personal assets are not at risk.
The limited liability also transfers over to the shareholders, as money is gained if profits are
made, however, as the business is a legal entity, if the company closes down, the
shareholders cannot be charged. They can lose only the amount they have invested
themselves.
A company also has a board of directors. This is a group of elected or appointed members
who oversee the activity of the business.
In a company boards are elected due to their previous experiences.
The whole of the Jaguar Land Rover board have previous experience directing other
companies.
