Understanding Business Organisations: Types, Structures, Functions and Culture

Understanding
business organisations

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Businesses are the commercial, industrial or professional activity that is being practised
in through a business entity. The practising of business is a complex activity which makes the
need of understand the business enterprises to efficiently practise it and attaining success in the
business process for achieving objectives of the company and growth. The following report file
is based on mentioning different factors that are elements of a business and helps in
understanding the term. It starts from mentioning three types of business with their advantages
and disadvantages including hospitality and tourism examples. Then there is the comparison of
the tall and flat structures of a firm with their definition, advantages and disadvantages. After
that, there is the explanation of three types of business functions and their impact on the
functional activities of companies. Lastly, there is the definition of organisational culture and the
way in which a positive culture influences the success of a firm.
MAIN BODY
The business being a complex process that can have different roles and responsibilities
according to the market, objectives, industry or scale of the business. Due to all of these factors
the business entities are divided into different types or forms of business. There are many
different types of businesses present in the market that have different roles and also different
involvement of the government (Jian, Fan, Zhao and Zhou, 2021). Some of the major types /
forms of business enterprises are – sole proprietorship, partnership, limited partnership, corporate
companies and many more. Sole proprietorship is the most commonly practised type of business
in which a single person is responsible for maintaining all the operations of the business and its
results. It is the most commonly found type of firms and are generally operated on a small scale.
These are established by the owner with the motive of earning livelihood. There may be different
number of employees in a sole proprietorship but the ownership, responsibility of the
maintenance and enjoying of profits are only to the owner. Its advantages is that there is
complete control / flexibility to the owner and is the most simplest and easiest form of business
with least cost requirement, whereas its disadvantage is that the owner has the unlimited lability
that can make it liable to sell personal assets in case of losses. Some examples of sole
proprietorship companies most commonly found can be – a financial planner, barber services or
a freelancer writer. Other type of business is Partnership, it is the engagement of two or more