Different Types and Classification of Business Organization

This presentation provides an overview of the different types and classification of business organizations. It discusses the advantages and disadvantages of each legal structure and explores how different organizations are managed and funded in both public and private sectors.

Business Law

Table of Content
• Introduction
• Different types and classification of business organization
• Advantages and disadvantages of different legal structures
• Different organizations are managed and funded in both public and private
sectors
• Conclusion
• References

Introduction
United kingdom is a large group of nation which concludes several divisions
and accordingly it has separate laws. Business law is one of most important
laws in this division as it provides guidelines and methods to different levels
of business organisation. It binds, protects and administers them on all levels
and keeps them out of illegal malpractices.

Different types and classification of business
organization
• Sole proprietorship: a sole trader is beneficial area for a single person
who is ambitious and passionate to follow his idea of generating monetary
rewards. Here all key decisions are taken by a single person and no
interference from any person or legal body is made.

Cont.…
• Partnership: Relationship between two people who are very much
interested in working together to generate profits together and share
responsibilities, duties, debts and profits of this business, both are equally
liable in this case and do not render much responsibility to one member.

Cont.…
• Limited liability partnership: its like every organisation but he major
benefit of having such organisation is to not become baggage of debts over
the owner. This company gives limited liability to all its members and no
other member is bound by all responsibility. Being separate legal entity in
nature it makes it distinguish from its owner. Its very much self sufficient
in nature and does not affect its owners at time of winding-up.

Advantages and disadvantages of different
legal structures
Sole Proprietorship: This type of organisation is single handedly managed by
person who has all the liabilities and responsibility of the business. The capital
generation, of such organisation is done by one person so capital investment is
very low and generally the business structure is smaller as compared to other
organisation. Here, the owner’s personal assets are always at stake since,
business is not a separate entity

Cont.…
Partnership: When two or more people collaborate together to full fill a
particular business deal and earn together and profits are shared between both
parties as per the ratio decided in contractual agreement. Its a legally bind
organisation in case one partner breaches the contract, innocent party can
claim compensation from them and recover their money back.

Cont.…
Limited Liability Partnership: These limited partnerships are very much
distinct in nature as they provide benefits on several levels. The biggest plus
point to acquire or open an LLP is that any member is not liable for any debt
of company. Being here gives a plus point that in case company is winding up
members do not have to liquefy their personal assets to pay off debts.

Different organizations are managed and
funded in both public and private sectors
• Sole Proprietorship: in this type since a single person rules all decision
there is no scope of arguments or delays in decision making but here
capital investment is also low so company cannot open a big outlet in
beginning.

Cont.…
• Partnership: in this people share all duties and responsibilities but due to
two or more members decision making gets delayed (Loafman and
Altman, 2014).
• Limited Liability Partnership: in this type member's are free of company's
responsibility of debts as its a separate legal entity but delay in decision
making occurs due to many members.

Conclusion
This report consists a brief analysis of different divisions of business law,
which will cover different techniques, methods and certain case laws which
will clearly define workings of this law. It also clears the fact that United
Kingdoms government and legislation is very strong and influential in nature.

References
• Kapottos, M. and Youngner, S., 2015. The Texas advanced directive law:
Unfinished business. The American Journal of Bioethics. 15(8). pp.34-38.
• Loafman, L. and Altman, B.W., 2014. Going online: Building your
business law course using the Quality Matters rubric. J. Legal Stud.
Educ. 3 . p.21.

Thank You