Understanding Business Organisation: Types, Structures, Functions, and Culture

UNDERSTANDING
BUSINESS
ORGANISATION

Table of Content.
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Paragraph-1..................................................................................................................................1
Paragraph-2..................................................................................................................................2
Paragraph-3..................................................................................................................................2
Paragraph-4..................................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business organisation is a corporate body or an entity that is organised by an individual
or group of individuals in order to carry out operations with the motive to earn profit from that
operations (Gitman, McDaniel and Shah, 2018). Business organisation is formed to fulfil the
needs and wants of peoples or to fulfil need gaps in the society so that profits can be earned in
exchange of these goods and services. In this report, a brief discussion will be made on business
organisation and its types along with their advantages and disadvantages. Along with this tall and
flat organisational structure, business functions and their management activities will be
discussed. Furthermore in this report, organisational culture and its positive impact towards the
success of an organisation will be discussed with appropriate examples.
MAIN BODY
Paragraph-1
A business organisation can be defined as a corporate structure that is organised and
operated by individuals or group of individuals with the motive of earning profit by fulfilling the
needs and wants of society or general public. A business organisation can further be classified
into different types that are Sole trader which is a form of business organisation which is owned
by a single person. The biggest advantage of a sole trader is that a sole trader is the sole eater of
all the profits that has been generated by the owner through carrying out various commercial
activities. On the other hand liability of the owner is unlimited and the owner is responsible for
the firm's credit up to their personal assets which is its biggest disadvantage. Some of the
examples of sole trader can be an individual tour guide, a small restaurant, a roadside guest
house etc. Another form of business organisation is partnership in which two or more than two
individuals enter into a legal agreement of carrying out business operations with a share in
profits and capital decided by them mutually. A major advantage of partnership is that decision
making process is smooth flexible and efficient as decisions are made mutually and any conflicts
or lacking indecisions are resolved. While a major disadvantage of partnership firm is that there
is no separate legal entity and the partners or owners are liable for company's credit till their
personal assets. A limited company is another type that is used by individuals to carry out
business operations which is a form of business organisation in which there are a large number of
owners that has proportionate share in the firm according to the equity they have invented in it.
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