Types of Business Organizations and their Implications for Learning and Development Policies and Activities

Learning and Development
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Introduction of business
• Business organisations not only ranges in size and sectors
but also differs in their structure of ownership.
• As stated by Baldwin (2016), a legal and ownership
structures of a business determines that several legal
responsibilities consisting of paperwork that the business
owners are required to complete for setting up a business.
• However, the legal and structures of ownership of business
may vary from one country to another. In all the countries,
majority of business comprise of sole traders, limited
companies and partnership.

Differences and similarity between types of
organisation
• Given in the background, the study aims to show the
similarities and differences in between various public an
public organisation based on the application of different
tools and organisational concepts for examining the
issues
• The concepts used consisted of goals, services,
ownership of resources and culture of diverse variation in
between leadership types and decision making within the
organisation. These are as follows in the next slide.

Sole Trader
• An individual running the business is known as sole
traders. Sole traders can maintain the business profits
after paying off the tax.
• However, Lewallen et al. (2015) stated that these
individuals running the sole traders are personally
accountable for any of the incurred losses that the
business makes.
• Therefore, the individual are required to cover them out
with their private money by paying for bills that is
incurred by the business and may keeping the records of
all the sales and the expenses.

Limited organisation
• Limited organisation is that, which is set up by its owners
to run the business. A limited organisation is a legal
organisation.
• To be specific the company has authorisation of legal
rights and obligation in itself, which provides them with
independent form of rights, and obligation from its owners
(Head and Alford 2015).
• Apart from these, a private limited organisation’s finances
are different from the finances of the owners. Therefore, it
implies that any profit that have been developed after the
taxes belongs to the organisation.

Business partnerships organisation
• This type of organisation are involved of arrangement where two
or more individual have the share of the ownership of business.
In this context, there are two main types of partnership that is
known as general partnership organisation and limited
partnership (Spigel 2016).
• In case of general partnership all, the partners are personally
accountable for the business that signifies that they have liability
for any incurred losses and lost debt from their personal income
and wealth whenever required.
• However, profits from the partnerships business are usually
shared in between the partners and each of the partners and then
pays taxes on their share.