Types and Purposes of Different Business Organizations

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P1 Types and purposes of different business organization

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Sole trader-This is a time of business activities where only one person
is responsible for development of their business activities from
marketing, promoting, dealing to decision making related to their
business activities. Many small scale business and startups are
considered as sole traders e.g. Anite an small scale business is a sole
trader.
Scope – They have small capitals, less risk involvement, liability is not
much, size of business is very small and it is limited in particular
geographical region.

Plan and Partnership – It is recorded as collaboration of two or
more that two people sharing their business resources and do
business activities. For success of their joint venture they share their
skills, values, knowledge, inventory and plan with each other for
gaining better profit from market place
Scope- Partners sell and buy on partnership’s behalf in credit or
cash, partners mostly avoid donating and lending money from
capital of their partnership ventures, and partners cannot take lines
or lent money without taking advice from their partners.

Company - It is a legal body that has their own existence and right to exist and
business in business market. Most of the investment for a company is mainly due
to shareholders as they can give suggestions and inputs for creating values for
organization.
Scope – Focus on increasing their customer base in different market to earn
more revenue for their products, expanding and creating brand image are some of
the important aspect of their growth policy.