Business Types and Functions: Examining Organizational Structure, Functions, and Culture

Business types
and
functions

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
This aim of this essay is to examine the different business types and its functions,
importance of organizational structure, business functions and impact of organizational culture.
A business organization is defined as an entity that is structured for the purpose of carrying on
the commercial enterprise such as buying and selling of goods or services and meet the consumer
needs. There are four types of business organizations partnership, corporations, sole
proprietorship and limited liability company. The main goal of an business organization is to
provide value to the customer and make profits. The business organizations objectives should be
SMART ( Specific, Measurable, Achievable, Realistic and Time specific) to achieve the aim of
the organization where business want to see itself in future (Han and Luo, 2022). In this essay we
will discuss about the type of businesses and their advantages an disadvantages, the
organizational structures, business functions and their impact, and impact of the organizational
culture in success of the business.
MAIN BODY
There are different type of business from which a businessman can choose to form a
company such as sole trader, partnership, limited liability company, and corporation. The Sole
Trader is a self employed person and the business owned and run by one person. These are
small unincorporated businesses. These individuals generally provides specialist services like
photographer, hairdressers or plumbers. The advantages of being sole trader are; it is the most
basic type of business and do not need to register the business, owner has the complete control,
and this is less expensive. The main disadvantages of sole trader are; the owner has unlimited
liability for the debt, these face difficulties in raising funds, the sole trader have the full
responsibility and work for long hours. Examples of sole trader are Princess Hotel, Hays travel.
Partnership is the business in which two or more people chooses to own and operate the
business together (Wang and Li, 2019). The advantages of partnership are; business is easy to
establish and costs low to start, the capital raising is easy as there are more partners and there
will be better decision making from partners. Disadvantages of partnership are; less profit as the
profit will be shared, the partners are liable for each others actions and decisions, in decision
making the disagreements will be there. Examples of partnership are Marriott and Cosmopolitan
resort Las Vegas, Southwest and Volaris etc.
1