Advantages and Disadvantages of Different Types of Business and Organizational Structures

Essay

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................4
TASK 3............................................................................................................................................4
TASK 4............................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business refers to an organization that is having various industrial, commercial and
professional activities. In this, there are many types of organizations like Limited company, sole
trader and partnership company that have their advantages and disadvantages. In this essay, there
is a discussion about various advantages and disadvantages of different types of business which
includes sole trader, limitd company and partnership. There is also a comparison and contrast of
organization structure which includes tall and flat structures. There is also discussion about
various business function like production, human resource management, operations and their
impact on their functional management activities. It also includes organizational culture and its
positive cultural impact on the success of the organization. It also provides some examples of
industry practices from different types of organisations (Symons, (2017)).
TASK 1
The limited company refers to another type of business structure which help individual to
separate their business entity. In this type of business, stakeholders and owner are liable and
wear risk in their investment where they keep their personal asset protected. This one is refers to
tax-efficient business structure where it has limited liability to stakeholders and owner of the
business. It is separate legal structure and contain different advantage and disadvantage. It is
difficult to establish and includes complex account within the business. There is no need to
include count of accountancy where the company needs to hire a various employees to conduct
their business. River Island is an example of limited company. Partnership refers to a relationship
within two different individual who get agree to share their profit with their business partner in
which they are working all together. In this type of organization involves two or more than two
person to run a business. This includes various advantages and disadvantages to business. There
is a requirement of many financial resources to expand their business (Yeboah, (2021)). There is
a requirement of many skilled person due to the involvement of many individual within business.
Due to structure of the organisation it is easy to manage the business and easy to manage and
establish. There is a disadvantage that this type of business have an independent legal identity
and their partners are liable to the liabilities. There is a disadvantage that such type of company
have some limitded sources of capital and to restained growth in the comparison to corporate
along with limited company. Example of a partnership company is Social Chain.Sole trader