Understanding Business Organisation - essay

UNDERSTANDING
BUSINESS
ORGANISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Advantages and disadvantages of types of business ..................................................................1
Comparison of different organisational structure.......................................................................2
Different organisation functions.................................................................................................3
Organisation culture....................................................................................................................4
Example from different organisation..........................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business organisation defined as an entity that are formed with the purpose of carry out
commercial business entity. It is generally developed in three forms i.e. individual
proprietorship, partnership and limited liability companies. This essay report discuss the types of
business organisation (sole proprietorship, partnership, limited liability) with their advantage and
disadvantage (Beynon-Davies, 2021). Further it involves comparison and contrast of
organisation structure along with explantation of different function such as HRM, production,
operations etc. Therefore, it also explains organisational culture and their impact on business
along with using different industry practice organisation.
MAIN BODY
Advantages and disadvantages of types of business
Sole proprietorship refers to an unincorporated business entity that is mainly owned by one
individual person. It represent as one of the simplest legal form of business entity. To effectively
understand the term several advantage and disadvantage are presented below:
The main advantage of sole proprietorship is that, sole proprietorship does not have any
particular form of legal requirements. Hence they started their business without any form of
registration. In sole proprietorship there is no need of fill out ton of paperwork, hence, an
individual operate this business with the motive of virtue of doing business. In this type, an
individual is sole owner of any king of profits generated within organisation.
It has several disadvantage also while doing business that, on the occurrence of the loss
sole trader have all the responsibility to fulfil the liability at any cost (The Advantages and
Disadvantages of Sole Proprietorship, 2021). Hence they have unlimited liability. Although they
also face difficulty in obtain funds easily and they in this sole proprietorship does not sell their
business easily to someone else.
Partnership defined as a formal arrangement of two or more than two people who are emphasis
on manage and operate their business along with share the profits. Some pros and cons of
partnership business are demonstrated below:
The advantage of partnership business is that, business partners have split the finances
so that no individual person face high burden. Therefore, due to split of financing responsibility
partners also split the responsibility of operations due to which targets are attained as well and
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