Understanding Business Organisations: Types, Structures, Functions and Culture

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Understanding Business
Organisations

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

INTRODUCTION
Business is an entity which makes, distributes or produces any services which other
members of the society are willing to pay for it. The basic characteristics of business are
production and acquisition of goods and services, the main purpose is to maximise their
profitability, there is uncertainty of events in the operation and it involves regular dealing in
different goods and services (Apostolou, 2019). The report is prepared to understand the role of
business organisation . To insights about business environment Intercontinental hotel group is
being taken into consideration. It is British hospitality company with its headquarter in Denham,
Buckinghamshire, England. The company is listed on London stock exchange and have its
presence in different countries. The report emphasis on the kinds of business organisation based
on their size and structure. It also discusses the different organisation structure that are being
implemented into business to regulate their operations and functioning. In addition, it determines
the business functions that are essential for any business to acquire growth and success.
MAIN BODY
Business is an enterprise that carries out professional activities which includes
commercial, industrial and professional activities. Business organisation can be profit making
and non profit making. There are different kinds of business organisation depending on their
ownership, size and capital structure and many more. The most common form of business
organisation is sole trader is a individual who are exclusively responsible to carry on the business
operations, he is the owner of the capital undertaking and responsible for all the profits and
looses of the business organisation. For example a small retail shopkeeper, he is the sole owner
and own the whole responsibility of business. The advantages of sole trader is financially
rewarding in nature as there is no need to share the profits of the business the whole profit
belongs to a single individual. There are fewer tax obligations and responsibilities , there is no
corporation tax to pay and annual return to be filled to Corporation House. Sole trader need to
submit self assessment tax returns (Nurhadi and Purnomo, 2018). Annually. In addition , there
is organisational flexibility as they can respond to changes quickly and much simpler than
running a limited company. There is privacy of the information of the organisation. In addition
there are disadvantages also there is lack of potential credibility as the sole trader do not carry a
prestigious reputation and recognition in the marketplace. There is sole responsibility that means
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