Understanding Business Organizations - Types, Functions, and Impact of Management Activities

UNDERSTANDING BUSINESS
ORGANISATIONS

Table of Content
INTRODUCTION............................................................................................................................3
MAIN BODY...................................................................................................................................3
VARIETIES AND FUNCTIONS OF BUSINESS ORGANIZATIONS....................................3
IMPACT OF FUNCTIONAL MANAGEMENT ACTIVITIES.................................................5
CONCLUSION................................................................................................................................6
REFERENCES.................................................................................................................................7

INTRODUCTION
Business organization is an establishment which is formed for the motive of carrying on
business enterprise. Comparable companies are divined on the system of law contract and
interchange of governing and belonging rights. Business organization is how the business is
orthodox, and controlled. There are benefits and drawback in every category of business
organization. The citation of being organized is called organization. In business if one or more
than one person are controlling then business is called business organization.
MAIN BODY
VARIETIES AND FUNCTIONS OF BUSINESS ORGANIZATIONS
The types of business organization such as Sole trader, Partnership, Limited liability
partnership, and limited company.
Sole Traders
An employee who takes on the profession by their own (Kasahun and et.al., 2020). This
is the easiest form of business proprietorship, this is the business which is run by for their own
benefits. Sole trader is owned by one person and the person only pays the taxes on which the
business earns the profit like explained the person owns self ownership. The other name for sole
trader is individual entrepreneurship which are basically holding their own business entity, self-
employed person. In this business there is not any director who runs the company but a single
person. There are some characteristics of a sole trader such as full control because the business
ownership is owned by self, secondly the person who owns one business is not a separated legal
identity, they are considered the same.
Function of a sole trader;
A sole trader manages the business and takes the responsibility on self. The person will be
responsible for the transaction from the business's. As the individual sole is in-charge for every
liability and the debts which are experienced by the business. When the owner feels that it is time
to sell the product then only the product is going to sell.
Partnership
Partnership is based on the two types such as general and limited. Partnership is based on
when a business is run by two persons such as the both partners are dividing many things like
money property, etc. to the company when they both are running and the partners must be liable
on each other, each partner is answerable for all the debts. Who invests in the partnership are