Understanding of Business Organisations

Understandings of
the business
organisations

Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The topic of the essay is understanding of the business organisations. The aim of this essay is
to discuss about some types of business and their functions. The business organisation refers to a
corporation or an entity that is conducting their operations on the basis of commercial activity
and describes that how their structure will help them to achieve to their goals (Osafo, 2022). The
main aim of the business organisation is to earn profit but there are some business organisations
which purpose is to provide social welfare to the public instead of the profit earning. There are so
many types of business organisations which we will discuss in this essay. The essay covers the
advantages and disadvantages of three different types of business and discuss about the flat as
well as tall structure of an organisation (Panigrahi and Jena, 2020). In this essay, we will discuss
about the functions of the business and gives an explanation that how positive culture impacts
the success of any business.
MAIN BODY
There are so many types of business organisation but we will discuss only three different
types of business organisation, that is, sole trader, partnership and limited company. The sole
trader is a type of business organisation which is owned by a single person and is usually small
in size as compared to others. It is one of the most common and simplest form of business
organisation (Church, 2020). The operations, decisions, investment, etc. is totally depend on the
owner. The benefit of running this kind of organisation is the flexibility which is gained by the
owner as they has not to inform anyone about their operations, decisions, investment, etc. To
start this kind of business organisation, the owner has not to follow a lengthy process as they
needs only a business license. And there is a very little regulations that this type of firm has to
follow. But the main drawback that this kind of firm faces as there is no differentiation between
their personal and business income. The disadvantage of this organisation is as the owners have
to work for long hours as because they was the single person who run and owned this type of
enterprise (Mishulina and et.al., 2019). The next organisation is partnership which is formed with
the minimum two peoples and needs a formal agreement between them. In this type of
organisation, the partners decide to share the profits or losses and their duties which is generated
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