Different Types of Business Organizations and Their Structures

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Business
Essay
8/14/2018
Student Name

1 | P a g e
Organizations can be described as groups or structures set up with the purpose of achieving
certain goals or objectives. There are different types of organization and purpose. These
different organizations include private organization, public organization, voluntary sectors,
cooperative business, and other charitable organization. All these forms of organization are
differing in their nature and their structure too (Shopify, 2018). The entire organization has a
different structure and formation in nature. The different structure in starting up the venture
includes partnership, sole traders, and private and public limited company form of business.
Different types of organization vary from large organization to small sized organization. The
goals and objectives of all these organizations also vary from the services provided by them.
Some are locally operating their business whereas some are expanding their business in the
international market. In these organizational, the structure will also be different.
Organizations have the functional structure, divisional or matrix structure in their
management. This structure will be chosen according to the size and operations of the
business.
The sole proprietorship business is a legal set up where the business is owned and controlled
by the single person. The business owner is not legally separated from the business and its
activities. Therefore, the owner will be personally liable for the business debts. Another form
of business that is the partnership is governed by the deed made by the partners. Irrespective
of the deed, partners are liable to share equal profits and losses in the firm. All the decision in
the business is done by the mutual consent of the partners. The partnership firm can have the
legal existence when registered under the law. Company form of business can be of two types
that is the private and public limited company (Binder, 2016).
For example, the John Lewis Partnership deal in the retails industry having employee more
than 100000 in the business. This organization size is big as compared to the sole

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proprietorship form of business and considered as the medium-sized organization. The aims
of business are to provide the quality product and service in the market. At present company
is planning to explore new areas and market of New Zealand (Evans, 2016).
Companies have a separate legal existence than its owner. The ownership and management in
the company form of business is different from each other. Shareholders and investors are the
owners of the business and directors have the responsibility of handling the management
affairs in the business (Seidl, 2016).
The purpose of the private organization is to serve the society but with the motive of earning,
the profits from the market by hook or crook. Private limited companies normally are a small
organization in their nature and size of the business operations as their liability is limited by
the shares. The business is limited to the small number of shareholders that is 50. Many
small-medium enterprises operate under the private limited company as it provides the
safeguard from the personal liability and helps to reduce the risk (Belal, 2016).
One of the examples of the private limited company is Brakes Group, which are dealing in
the food industry having the employer base of 10000. In this company, the majority of the
funding was given by the Bain Capital. The company is dealing in distributing the food, drink
and other products, which are mainly related to the catering in the UK. The company is
following the matrix structure in their organization and taking the advantage of both the
functional and divisional structure. The company has different sites and distribution center in
which a functional manager or a divisional manager working at the same level and covering
some of the same managerial territory (Giaoutzi, Storey, and Nijkamp, 2016).
Another example for the private company can be taken is of the Virgin Atlantic, which is
providing its services in the airline sector. The company has an employee base of 9000. The
majority of the shareholders in the company are virgin Group with 51% of the holding of the