Understanding Business Organization

Understanding Business Organization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
Types of business:........................................................................................................................4
Compare and contrast organizational structures..........................................................................5
Discuss different business functions such as Human Resource Management, Production,
Operations, etc. and the impact of their functional management activities on organizations and
the people within the organizations.............................................................................................6
Define organizational culture and explain how positive culture impacts on the success of
organization.................................................................................................................................7
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................9
Books and Journal........................................................................................................................9
INTRODUCTION
The phrase "business organization" refers to how companies are organized and how that
structure aids them in achieving their objectives. In general, companies are set up to either make
a profit or contribute to the betterment of society. Sole proprietorship, partnership, and
corporation are the three fundamental types of company structures. Employees have the
flexibility to make decisions as a result of the organizing process, which allows them to flourish.
They are constantly prepared to take on new tasks. This circumstance may be beneficial to the
company's growth (Rhodes, 2017). This increases the enterprise's earning potential, which aids
its growth. This report going to analyze the standing of variety of the organization types and their
functions and also going to explain about the impact of functional management activities on the

company and on the individual. Along with this report also explain about the organizational
culture and their positive culture impact on the success of the organization.
MAIN BODY
Types of business:
Sole Trader: A sole trader is a self-employed individual who owns and manages their
own firm. A single trader firm does not have a legal identity separate from its owner. Sole trader
is the person who has absolute control over their business over their Assets and profit after. A
sole trader is the personality which is responsible for their business debts and their personal
assets. Example: plumbers, hairdressers and many more.
Advantage:
The main advantage of being a sole trader that they are their own was and they can
dictate the direction and the way of the organization. Another benefit of the sole trader is that
they have power to change the business structure and keep all the profits. As a sole trader the
person become capable to maximize their privacy and they have unlimited liability.
Disadvantage
Sole traders incur all of the risks of starting their own business, as well as the possibility
of unlimited liability. A lone trader is individually liable for the business's debts. This means that
personal property, such as a car or a house, might be sold to cover corporate debts.
Partnership: A partnership is a legally obligatory agreement among two or more persons to run
and direct a industry while splitting profits (Yunoki, Torres and Cholima, 2018). There are
several types of partnerships. In a partnership, all partners share equally in the responsibilities
and profits, while participants in other firms may have limited liability.
Advantage:
There is the option of income splitting, which is a big benefit because it saves money on
taxes.. The commercial dealings of partners are kept confidential. Having a business partner
might help them to share the financial load of running their company's costs and capital
expenditures.