Introduction of Business

Introduction
of Business

Contents
Introduction of Business........................................................................................................................1
Introduction...........................................................................................................................................3
Type of business organisation...........................................................................................................3
Porter’s five forces model..................................................................................................................4
Macro-environmental factors............................................................................................................5
Conclusion.............................................................................................................................................6
References.............................................................................................................................................7

Introduction
Business organisation is one of the entity or a well structure company that
formed for the purpose of commercial enterprise or an organisation. Such
organisations are predicted on law governing exchange and contracts, property
rights or the incorporation. As a business owner, there is a need to carry some of
the well planned and well-structured business organisation. There is a need to
adopt some sort of legal adoption, personal liability and financial stability.
Long-term implications are all needed for the business sufficiency and there is a
need to consult with an accountant which helps you to select the form of
ownership which is also a right for you (Karia, N., 2020). There are four types of
business organizational structure Sole Proprietorship, Partnerships and
corporations.
Type of business organisation
Sole Proprietorships: It refers to such type of business organisation on
which the beginning is from the small business. These are the firms which have
been owned by only single person. Someone who have day-to-day
responsibilities to run all their business by own. The assets made by him owned
the sole proprietorships and generating the profits. Liabilities or debts are all
included in the responsibility of any assets and liabilities. In the eyes of law and
public, sole proprietorships includes least expensive form of the ownership, and
functionally organize (Rasouli and et. al., 2019). Sole proprietorship are completely
in control and within some of the parameters of law, decision making process is
quiet inclusive.
The owner’s personal tax return has been flow directly from the
maximum profit of the organisation. Also, the business can be easily dissolve, if
somehow they get desired. It can be also suggested that Sole proprietorships has
some negative aspects as well including unlimited liability and legally
responsible for all the debts against the business. However it can simply risk the
personal assets. Raising of the funds and limited using funds are attained in
terms of personal loans and consumer loans. The employees can simply
benefitted from the medical premium but not deductible from the income of the
business (Saura and et. Al., 2019).
Partnerships : It refers to such type of organisation where two or more
people are working together and they reflected out as a single organisation of