Business Organizations: Types, Structures, Management, and Funding

This report provides an overview of different types of business organizations, including sole proprietorships, partnership firms, public and private limited companies, limited liability companies, S-corporations, and corporations. It explores the nature and formation of each type, highlighting their key characteristics and legal structures. The report critically evaluates the advantages and disadvantages of each legal structure, comparing factors such as liability, ease of setup, and management complexity. Furthermore, it examines how these organizations are managed and funded, covering aspects like the roles of shareholders, directors, and managers, as well as the sources of funding such as bank loans, peer-to-peer lending, and the issuance of shares and debentures. The conclusion emphasizes the importance of adhering to legal guidelines, such as those outlined in the Companies Act 2006, when making business decisions. References to relevant academic literature are also included.

TYPES OF
ORGANISATION

Table of Content
 Introduction
 Different types and classification of business organisations in both the public and
private sectors
 Critical evaluation of the advantages and disadvantages of different legal
structures.
 Different organisations are managed and funded in both public and private
sectors.
 Conclusion
 References

Introduction
Organisation can be of different types and it is the choice of investor that in
which sector they would like to invest their capital. The most important
thing which is necessary to understand in it is that setup should be done as
per the requirement of law and regulations.

Nature And Formation Of Different
Types Of Business
Sole Proprietorship: These are small in size which get the right to conduct
business activity in limited area. Business is performed with small
amount of capital and it is among one of the reason that there are very
few legal responsibilities which is needed to be conducted

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Partnership Firm: Business organisation where people of similar
objective shows their participation to earn profit by coming together
in a single firm is known as partnership firm. In current situation,
the most commonly being formed business organisation is
partnership firm.

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Public Limited Company: The form of business organisation where
public get the opportunity to connect with association is known as
public limited company. This sort of business need to work at a
greater platform to earn the profit and correct team is require who
can take the daily basis decision for better outcomes

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Private Company limited Share: These are company in which
limited number of member come together for conducting business
activity. The main thing which is needed to be considered is that
any of the outsiders are not allowed to join company in any of the
situation.

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Limited Liability Company: These are the business organisation
where combination of partnership and corporations can be seen as
number of benefits are provided to them and even it is easy to
perform. The legal structure to incorporate any of LLC is that list of
members should be prepared and after that the formation of MOA and
AOA should be done.

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Limited Liability Company: These are the business organisation
where combination of partnership and corporations can be seen as
number of benefits are provided to them and even it is easy to
perform. The legal structure to incorporate any of LLC is that list of
members should be prepared and after that the formation of MOA and
AOA should be done.

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Corporation: This are the business organisation which perform business activity at a
greater platform where lots of legal duties are needed to be followed. The legal structure
which is needed to be followed for starting business is that name and address is must.
Then, MOA and AOA is also needed, directors and shareholder are to be decided so that
all of the legal work can be done in a systematic manner.

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S-Corporation- This are the business organisation which I perform business activity at a
smaller grounder where up to 100 shareholders are allowed to be the part of a company.
The main benefit of this types of company is that it gets the opportunity to perform
business at which paying any of the income tax.

Advantages And Disadvantages Of
Different Legal Structures
Sole Proprietorship: The main advantage of sole proprietorship firm
is that is whole of the profit is taken by the owner himself/herself.
Public Limited Company: Any of the outsider can invest their
capital in the company which is one of the advantage whereas
disadvantage is that it has to follow lengthy procedures to take business
decisions.