Types and Purpose of Different Organizational Structures

Business
Environment

Types and purpose of the different types of
the organisation structures
Private sector organisation
It is the profit-making company which is managed and
owned by the private enterprise and there is no control of
the government on the private companies. The venture
which is private sector are free from the authorities
ownership and control

Sole traders
Advantages
Sole trader organisation means the trader is the owner of the company where
he has right to control over every part of the organisation and take the
relevant decision which is in the favour of him. They have right over all the
profits which is earned by him and need not to distribute to the others.
Disadvantages
In the sole trading organisation, the owner which is trader have the unlimited
liability over him, if there is any loss occurs, all need to bear by him. It is
very difficult for the sole trader to raise the large amount of finance

Partnership
Advantages
There will be more capital available to run and invest in the business
as there are more numbers of the partner who are accessible to
invest their fund. The organisation is easy to run, manage and form
as there is less restriction over the enterprise by the different laws.
Disadvantages
The biggest disadvantage in partnership is the profit is distributed
among all the partners in the organisation. If one partner does not
agree for the deed then many problems will arise.