Understanding Business Organisation - Forms, Functions, Culture & More

Level 0 Guide - Essay
2021/2022.
Understanding Business Organisation
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Table of content
Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Forms of business organisations along with advantages and disadvantages..............................3
TASK 2............................................................................................................................................4
Difference between tall and flat business structure.....................................................................4
TASK 3............................................................................................................................................4
Business functions performed at organisation............................................................................4
TASK 4 ...........................................................................................................................................5
Organisational culture and its positive impact over the success of the organisation..................5
CONCLUSION ...............................................................................................................................6
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INTRODUCTION
Business organisation is referred to the establishment of a business organisation wherein
the main motive of the organisation is to earn profits. A business organisation has to comply with
the various government as well as legal contracts. Business organisation can opt from a variety
of legal structures such as sole proprietorship, partnership, limited liability corporation, etc. It is
very important to develop an understanding regarding the business organisation before
establishing a business (Connelly And et.al., 2019).
The report focuses upon understanding business organisation while considering Unilever
as the primary organisation for the study. Unilever is a UK based organization that deals in
consumer goods. The headquarters for Unilever is established at London and serves an area
worldwide through its 400 brand names.
TASK 1
Forms of business organisations along with advantages and disadvantages
Sole proprietorship is referred to a business organisation that is operated as well as owned
by one person only. In sole proprietorship, the owner is responsible for carrying out smooth
operations within the business organisation. The owner is the sole contributor for the capital in
the business. The type of business organisation has its advantages as well as disadvantages. The
advantages of sole proprietorship business are that it is quite simple to form. Further, sole
proprietorship as a business organisation facilitates quick decisions as the owner is not liable to
consult others for decision making at the organisation. The sole proprietorship also facilitates
high level of secrecy at the business organisation. The secrets are easy to maintain in order to
hide them from the competitors. The disadvantages of sole proprietorship is that it has limited
funds, lacks professional skills and possess unlimited liability wherein there is risk upon personal
assets of proprietor. An example of sole proprietorship is a health care provider business (Li and
et.al., 2018).
Partnership business is referred to a type of business wherein the business is controlled by
more than one person. In partnership business, the partners contribute capital and further share
the profits, losses as well as risk. A partnership business organisation usually forms a partnership
deed in order to avoid situation of conflicts. Partnership business has its various advantages as
well as disadvantages. The advantages of partnership are that it is easy to form, it possess better
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