Understanding Business Organisation and Its Impact on Success

Understanding Business
Organisations

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Definition and outline three advantage and disadvantage of various types of business.............1
Compare and contrast organisational structures.........................................................................2
Discussion of business functions and its impact of their functional management practices on
company and individuals.............................................................................................................3
Organisational culture ans explanation of how positive culture impacts on success of
company......................................................................................................................................4
Example of industry practice.....................................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business organisation is defined to an entity which is focussed in performing
commercial enterprise by providing products and services for meeting requirements of customers
(Matshabaphala and Grobler, 2021). There are basically various types of business companies
which are sole proprietorship , limited partnership, general partnership and so on. They are
basically structured and it could help them in meeting their desired objectives. Companies are
basically designed to keep their focus on generating profits and enhancing society level. Business
organisations are carried in order to generate profits for them by providing services (Oladinrin,
Jayantha and Moses, 2021). This report is based on understanding business that states about
various companies. This essay report consists of merits and demerits of various kinds of
business and comparison of organisational structures. It also includes understanding of various
business functions and its impact on their functional management practices with organisational
culture with explanation of impact of positive culture for success with industry practice followed
by its conclusion.
MAIN BODY
Definition and outline three advantage and disadvantage of various types of business.
Some of various types of companies are as follows:
Sole trader: It is a type of business in which individual who owns their business as well
as retains all profits from it. This ownership is basically owned and run by single individual.
Some of advantages of sole trader business is that ownership keeps all profits that are generated
by business. There is maximum privacy with a secrecy and sole trader business is easier to
change their legal structure with any uncertainty (Odiba,Demian and Ruikar, 2021). Some of
disadvantage of sole trader is that owner has unlimited liability of debt. Capacity of raising
capital is limited and in this business it becomes difficult to retain highly effective employees.
Partnership: It is a type of business where two or more than two individuals begins to
oversee business operations as well as share their profits and liabilities. They generally agrees to
cooperate to their advance mutual interests. Some of merits of partnership is that this business
could create more capital for business (Bell and Hofmeyr, 2021). Partnership business provides
greater borrowing capacity and partner's business affairs are private. Along with it also carries
some of disadvantage which is that it liability of this business for debts are unlimited. There is a
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