Different Types of Business, Organizational Culture and Structure

Essay

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business functions, organizational culture and organizational structure are important
factors to be considered during creation of of an enterprise (D’Allura, 2019). It is important to
gain knowledge of different business functions, different types of business firms in order to
effectively manage successful business firms. This essay aims to provide outline of different
types of business along with merits and demerits of each type of business. Sole trader,
partnership and limited company are the business types described in this report. In addition to
this different types of organizational structures are compared in this essay. A discussion on
different business functions is provided in this essay along with the impact of functional
management activities on business firms and employees working in business firms. This essay
mentions definition of organizational culture and positive impact of organizational culture on
success of a company.
MAIN BODY
Sole trader is defined as a self-employed individual who has the ownership of their
company and manages the operations of tier organization. The company of a sole trader is not
considered a separate identity from a legislative perspective. An example of sole trader in UK is
freelance writers in the country who offer their services as a sole trader. The primary advantage
of setting up a sole trader ship is that it is simplistic form of business structure and is relatively
easy and inexpensive to set (Khandelwal, Yadav and Kumar, 2020). The main disadvantage of
of sole trader is that it leads to poor work life balance and sole traders have unlimited liability. A
partnership refers to formal agreement between two or more parties to manage and operate a
business and share profitability of the company. The partners forming a partnership can be
individuals and other business firms and also governments. An example of partnership in UK is
John Lewis Partnership. The primary advantage of partnership is that it helps eliminate gap as
expertise from more than one individual is provided to business firms (Roulet, 2020). In addition
to this another advantage of partnership is that it reduces costs of setting up an enterprise. The
primary disadvantage of partnership is that it involves profit sharing which reduces individual
profitability of each partner (Villani, Greco and Phillips, 2017). Limited firms in UK are legally
separate and has separate finances from personal finance of individuals who operate the firm. A
limited company in UK is either limited by shares or limited by guarantee. The difference