Understanding Business Organisations: Advantages, Disadvantages, and Impact on Workforce

UNDERSTANDING
BUSINESS
ORGANISATION

Table of Contents.
INTRODUCTION...........................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business organisation refers to an entity which is incorporated to carry a
commercial activity of buying & selling. In simple words, it means how the businesses are
structured and how it helps them to achieve their required goals. These organisations are
predicted on property rights, regulations and incorporation (Osafo, 2022). There are mainly four
major business organisation i.e. sole proprietorship, partnership, Limited Liability Partnership
and Company. The essay will explain and outline three advantages and disadvantages of the
different kinds of businesses like sole trader, partnership and company. Further, the project will
compare tall and flat structure of an organisation with an example of hospitality and tourism
industry. The task will discuss the business functons such as human resource management,
production, operation and the impact of these activities on the workforce. The essay will define
the organisational culture and how positive culture influence its success. In the end, the study
will provide examples of different industry practices.
There are many forms of businesss organisations and you need to choose one while
setting up your business considering its merits, demerits and type of business. Sole
proprietorship is an enterprise which is exclusively owned by one natural person having
unlimited liability and not being seperate from its owner (Kasahun, 2020). There are advantages
of this form such as simplest and least costly business to operate having full control, easy
registration of business license while registering in your name and no need to pay seperate tax
for the proprietorship (Lawrie, 2020). The main demerits of sole enterprise are firstly the owner
is personally liable for all the debts & legal battles, may jeopardize the personal assets of the
owner and the entity would become defunct with the death of the owner. Partnership is another
form of business formed by two or more individuals sharing the profits & losses in regard to the
capital invested by them (Safter, 2019). There are certain benefits like partnership can be
maintained easily due to no requirement of meeting, no need to pay corporate taxes if not
registered and sharing of liability could be limited if using modern kind of partnership. It has
drawbacks like legal battles due to informal partnership agreements, limited number of members
could only be associated as given under the law and unlimited liability in case of any dispute
arises in running business (Anopchenko and et.al., 2019). The example of partnership would be
Hilton London Bankside. Limited Liability Company is the third form of business which is an
artificial person created by law, having perpetual succession and a common seal for