Understanding Business Organizations

Understanding
Business
Organisations

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Different types of businesses:.....................................................................................................3
Compare and contrast organisational structure:..........................................................................4
Impact of functional management activities on the organisation:..............................................5
How positive culture can impact the success of the organisation:..............................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
A business organization can be referred as an entity focused on various kinds of industry,
professionals, and commercial actions with the goal of gaining higher profit (Geissdoerfer and et.
al., 2020). There are various types of business structure, such as company, partnerships, and sole
proprietors, each with its own strengths and weaknesses. The following essays describe several
forms of corporate organizations and their strengths and weaknesses. This essay, also focuses on
the comparison among the tall and flat organizational structures, as well as the various
departments of the company. This essay also discusses about the culture of the firm and its
influence on organizational success.
TASK
Different types of businesses:
The sole proprietorship structure is being considered as the most common as well as
easiest way to run a company. In this type, there is only single owner and is very cheap
compared to other types of businesses, so it means that it is easy to established. Company owners
enjoy the entire profits they generate and do not have to share them. In addition, the proprietor is
responsible for paying the debts (Henley, Vorley and Gherhes, 2021). The biggest benefit which
is associated with this It is easy to set up and requires little investment. The owner is only
responsible for taking the decision and developing the strategies for the company growth.
Moreover, to this, the biggest disadvantage with this structure is that business owner possess
unlimited liability with limited income. Novus Accountancy Ltd is an example of sole trader.
Partnerships are the other kind of business enterprises that consists more than two people as
company owners. A partnership business structure can be defined as an agreement among more
than two people who oversee the various processes of a firm and enjoy the profits and liabilities
in the decided proportions (Hoekstra and et. al., 2020). The positive thing of a partnership
business structure is that each partner is supported financially, physically and emotionally to
keep the organization running smoothly, but the biggest drawback is unlimited liability.
Individuals of the partnership firm are only accountable for the payment of debts. An example of
a partnership company is Social Chain Group Limited. In addition, a limited company is also a
form of company structure in which there is separate legal entity. This means that company
owner’s is completely separated from the company (JENKINSON, 2020). The organization's