Understanding Business Organisations - Essay

Understanding
Business
Organisations

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Different types of businesses:....................................................................................................3
Compare and contrast organisational structure:...................................................................4
Impact of functional management activities on the organisation:........................................4
How positive culture can impact the success of the organisation:..............................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business organisation may be defined as an entity which paid focus on the different types
of industrial, professional and commercial activities whit a motive to earn more and more profits.
There are different forms of the business enterprises like limited company, partnership firm, sole
trader and many more which has its own advantages and disadvantages(Al-Dmour, Abbod and
Al-Balqa, 2018). The following essay is going to cover the different types of business
organisation with its advantage and disadvantage. This essay also paid focus on the comparison
and contrast of structures of the organisation along with the different department of the
organisation. This essay also defines the organisational culture and its impact on the success of
the organisation.
TASK
Different types of businesses:
Sole trader is the most common way of doing the business. This type of business is
owned by a single owner and it is very easy to set up because it is very low cost as in comparison
to other kinds of businesses. In this, the owner of the firm enjoys the whole profit which are earn
by the company they don't need to share the profits. Along with this the owner is also liable for
the unlimited liability. The advantage of this type of business is, it is easy to establish and low
amount of investment is required. The owner has full control over the decision-making and
profit. Apart from this, the biggest disadvantage of this for the business is these gives limited
profits with unlimited liability. The example of the sole proprietorship business is Novus
Accountancy Ltd. Partnership is another form of business which comprises of two or more
individuals as the owner of the firm. A partnership may be defied as an agreement between the
two or more individual which oversees the different operations of the company and share the
profits and liabilities in equal or agreed ratios (Gabrielli Russo and Ciceri, 2019). The advantage
which is associated with the partnership is this support each partner not only financially but also
physically and emotionally in order to run the business operations smoothly whereas, the biggest
disadvantage is the unlimited liability. The partners of the company are only liable for the
payment of the debt. The example of the partnership firm is Social Chain group limited. In
addition to this, limited company is another form business in which the owner of the business is
totally separate from the firm. The finances of the organisation are separate from the personal