Understanding Business Organisation

UNDERSTANDING
BUSINESS
ORGANISATION

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Advantages and disadvantages of various types of business......................................................1
TASK 2............................................................................................................................................2
Compare and contrast the organisational structure.....................................................................2
TASK 3 ...........................................................................................................................................2
Explains different type of business functions and their impact on business...............................2
TASK 4............................................................................................................................................3
Define organisational culture and how positive culture impacts on the success of organisation.
.....................................................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Business is the separate legal entity which is engaging in production, selling product and
any activity which is entitled to generate higher profits. Every There are different type of
business forms such as sole trader, partnership and limited company which is running in the
market and they used different organisation structure on the basis of their size and function. (Ray
and et. al., 2020). Different organisational structure are flat, hierarchical and divisional. This
Essay includes the various examples of industries which are ensuring higher profits and growth
in their business. This report will cover the different functions of business ans their impact on
the management activities and it will compare and contract the organisational structure.
TASK 1
Advantages and disadvantages of various types of business.
Sole trader are the individual who manage and own their business by their own and they
as only responsible for all the profits and looses within the venture and also liable to pay all the
taxes which is being imposed by the government. Hairs stylist and plumber are the best example
for sole trader(Norese And et. al., 2021). The advantage of sole trader is that they can setup their
ensure with easy approach they are opening up on small segment and all the profits is being
retained for the owner itself as single person is involving in the business and their success.
Disadvantage fr the sole trader is, they are having unlimited liabilities and can be difficult to
procure and raise the funds for their business operations and their expansion.
Partnership is the agreement in which tow or more individual are entitled to run the
business and share their profits&looses for the same. They are also liable to all the taxes which is
being imposed by the government under partnership act. There must be transparency among the
partners related to the capital and income. Deciduous is the best example for the partnership
organisation which are giving information for the management services. The advantage of
partnership is that all the partners share their profits and looses on agreed basis. Due to which
they tends to share the burden of all the looses together which is the disadvantage for the
business.
Limited company is the general form of incorporation which limits the amount of
liability which is undertaken by the shareholder's of the company(Maroun, 2020). It is the main
consideration of the business or refers to the legal structure which ensures that the liability of the
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