Understanding Business Organisation - Types, Structure, Functions and Culture

Understanding Business
Organisation
ESSAY

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Types of business organisations ..................................................................................................3
TASK 2............................................................................................................................................4
compare and contrast organizational structure............................................................................4
TASK 3............................................................................................................................................6
Discussing different business functions : ....................................................................................6
TASK 4............................................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business organization, an entity established for the purpose of carrying on commercial
enterprise. Every business organization must follow law systems, rules and regulation and
policies to run their business smoothly. The present report will be based on types of business
organization and it will provide detailed information about advantages and disadvantages of
types of business. Furthermore, it will also highlight the business functions and their roles to
improve organizational culture.
TASK 1
Types of business organisations
Sole trader
Sole trader is a type of business which is run and own by one person only, hence, this is
also known as sole proprietorship. The person can keep all business profits after they have paid
tax on them. The person is responsible for any losses and must follow rules and regulation to run
its business smoothly (Cappellino, 2020). All the important decisions are made by owner for
their own benefit. For example- beauty parlours, event planner, plumbers etc.
Advantages
 This is the most common form of business ownership because all the profits are subject
to the business owner only.
 The owners have business flexibility while running it and make decisions by their own to
earn profits.
 The person has to follow few rules and regulation as compared to other form of business.
Disadvantages
 Owner of this business has to bear all the losses alone.
 While running this business the owner could not able to differentiate between business
and personal income.
 It has been said that equity is limited to the personal resources of business owner.
Partnership
when two or more people oversee business activities, operations and share business loss
and profits then it is known as partnership company. In general partnership, owners of the
business invest their money, labour and property to achieve success (Enamul and Nilufar, 2018).
They all are liable for business debts and have to make important decisions together. While on