Business Report on Business Types, Functions, and Financial Aspects

This business report provides an in-depth analysis of various business types, including private, public, and voluntary sectors, and their respective purposes. It explores the responsibilities of key functional units such as HR, marketing, and finance, highlighting their interrelations and collaborative working practices. The report delves into the role of financial management, covering aspects like types of finance, access to funding, and the liabilities of different business structures. Furthermore, it examines essential company documentation, including profit and loss accounts, balance sheets, and cash flow statements, outlining their purposes. The report emphasizes the importance of organizational culture and leadership styles in influencing business performance and concludes with a summary of the key findings.

BUSINESS REPORT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Types of businesses.....................................................................................................................1
Responsibilities of functional units.............................................................................................2
Interrelations of functions...........................................................................................................2
Working practices.......................................................................................................................3
Role of financial management....................................................................................................4
Company documentation............................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Business is refers to the activity of buying and selling of goods in order to earn the profit. This is
refers to the organisation or entity that is engage in the commercial, industrial and professional
activities that has included the production and selling of goods for the profit maximizations.
Business are consist of the many departments that are work together towards the accomplishment
of common goal. And this involves HR department, finance department, marketing department
and many more(Shepherd, and. et. al., 2020). There are various types of business sectors that
exist in the business environment such as private sector, public sector and voluntary sector. This
report will includes the role of HR. marketing and finance function in the organisation,
understanding of an collaborative working practices and role of financial managements and
report within an organisation.
MAIN BODY
Types of businesses
Purpose of business:
Profit: The basic of the business is to earn the profit as much as they can. A company
cannot survive or sustain without making profit now and then. It can provides the benefits to its
customers for the longer period of time only when it is profitable.
Customer value: Company can survive in the market for longer period of time when it
has the loyal customer base. So the business is work to add the value to customer by satisfying
their needs and requirements in a effective manner. Along with this company without customer
has no reason for being and to survive.
Business sectors:
Private sector: This is the part of the economy in which companies are owned and
managed by the individuals rather then a government. And most of them run with the intention
of making profits. And on which government has the less control and restriction. For example,
Iceland and JCB (Botayeva, Anarbayev and Botayev, 2018).
Public sector: This is comprised with the organisation that are owned and run by the
government and exist with the main focused on to provide the services to the citizens. And this
companies did not look forward to generate the profits. For example, network rail and BBC.
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Voluntary sector: In this sector companies are associated with the purpose to provide the
benefits and enrich society without the motive of making profit. And it is not controlled by the
government. For example, British heart foundation and the national trust.
Responsibilities of functional units
Human resource department: HR function is associated with the management of
employees and workers of an organisation. They have played the various responsibilities such as
human resources planning which is basic function of HR to know about the future acquirements
about what kind of people organisation need and how much along with this it also has the
responsibilities of recruitment and selection, performance management, learning development
and career planning etc.
Marketing department: This department plays an vital role in the organisation as this
promotes the business brands and mission of the company. It serves as the face for the company
as it coordinates and produce all the materials that is used to represent the business. In addition
this there are various responsibilities of this department such as defining and managing the
brand, campaign management for marketing initiatives, produces marketing and promotional
materials and conduct customers and market research and many more(Singh and Manhas, 2018).
Finance department: This department covers the wide range of responsibility besides the
basic bookkeeping which is used to provide the information to assist manager in the strategic
management. This is also responsible for the managing organisational cash flow and ensures that
there are enough fund to meet day to day operations. It is also prepare the budgets and forecasts
with the help of managers. This department has considered the resources to assist the managers
in running the business smoothly and effectively.
Interrelations of functions
HR department is responsible for managing the employees and workers in the organisation and
activities which are related to them such as recruitment, selection, measuring performance, salary
etc. Whereas finance department is plays a vital role which includes the budgeting, forecasting,
cash-flow, and all financial activities of the organisation. And marketing department is engaged
in making the brand popular in order to attract the customers along with this it also did the
market research. Working together and coordination between the department is essential aspect
as they work for the same goal and objectives of the organisation, funding of all the departments
is depend on the finance departments, requirement of the human resource is fulfilled by the HR
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department and marketing has the influenced the brand image in front of the customers,
candidates and stakeholders.
Importance of interrelation
Building trust between teams: Effective and efficient communications and interrelation
between the departments enhance the trust between them and deliver accurate information and
ensures that the reliable information is to be given that improves the operational efficiency.
Avoid conflict: If the departments work together and has the effective communication
between them then it will help in to elimination of the conflict and stress and support in to
enhance the performance (Plester, 2016).
Consequences if they did not work together
Lack of trust: If the departments will not work together then there will be lack of trust
that might be turn in to the conflict and stress in the organisation. Which has the direct impact on
to the performance of the company.
Poor coordination: If they did not work together and has the poor communication then it
leads to the poor coordination between the departments that has the direct impact on to the
productivity and profitability of the organisation as poor coordination leads to the poor
performance.
Working practices
Organisational culture: This is refers to the sum collection of values, expectations and practices
which guides and inform the directions of the all members. This is also described as the traits
that makes the company what is it. A good culture represent positive traits that leads to improved
the performance and productivity of the organisation. While on the other hand defective or bad
culture can hamper the even the successful organisation.
Development of culture
Size: If the size of the organisation is large then it has the culture with the many types of
individual and will also depends on its internal structure
Location: This factor also influenced the culture of the organisation as if company
operated in the various locations then it will have the people from the local economy from the
various locations.
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Beliefs: Organisational culture is made up with employees who are working there to
accomplish the objectives of the company, in improving or affecting the culture, belief of the
employees is also responsible.
Charley handy's concept:
Power: In this culture power is held in only some of the executives and individuals, this
is associated with the rules and regulations and individuals with the power only decide what is
going to happen next.
Task: In this culture team are made with the purpose of identify the solution of the
specific problem to complete the project or task effectively in order to get achieve the objectives
perfectly (Sanyal, 2017).
Role: This role culture is based on the rules and everyone in the organisation are highly
controlled with knowing their specific roles and responsibility.
People: It is the culture where individuals see themselves superior then and unique then
the organisation. It associated with the thing that organisation is just a collection of individual
which is happen to work for the same organisation.
Impact of leadership style:
Role of financial management
Type of finance and access:
Private sector: Private sector raise fund for the various reasons, a business mainly needs
the money at the time of start-up and growth phase. They borrow the funds from bank loans,
angel investors, venture capitalist, and crowd sourcing and also can borrow from the friends and
family at the initial stage.
Public limited company: A public company raise equity capital with initial public
offering. It has issues the shares to the public or existing shares holders. Other then this they also
raise the fund by sale of goods and services, issue bonds, stock exchange through initial public
offering etc.
Liability of sole traders: Sole proprietors are personally liable for the business debt, as
business is run under the name and personal responsibility. Creditor can enforce the judgment
against the business as well as personal assets, including family bank account or even house
(Preda, 2018).
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Liability of public limited company: If the company is unable to pay the loan then both the
directors and shareholders are not responsible for the debt. As company is solely liable to repay
the loan because company is registered under the companies act is legal separate entity and
different from the individual member.
Company documentation
Profit and loss account: This is refers to the financial statement that is used to summarize the
revenue, cost and expenses that are incurred during the specific period of time in the
organisation. This record of the profits and expenses provides the information about the ability or
inability to generate the profit by increasing value or by cutting cost or can be both.
Balance sheet: This is also refers to the statement that presented the report about the company’s
assets, liabilities and shareholders’ equity at a certain period of time. It provides the basis to the
company to calculate the rates of return and for evaluating its capital structure.
Cash-flow statement: This is also known as statement of cash flows which is summarized and
provides the aggregate data regarding all cash inflows that a company receive from its ongoing
operations and from the external investment sources. This also shows how balance sheet changes
have the impact on to the cash and cash equivalent.
Purpose of producing these documents: These all are the financial statements that are
produced within the organisations that provide support in to convey the business activity and
financial performance of a company. These are often audited by the government agencies and
accountant forms to ensues about the accuracy, tax and investing purpose
CONCLUSION
From the above analysis it has been concluded that business is refers to the activity of buying
and selling of goods in order to make the profit. There are various types of business that are
divided on the basis of different categories. Furthermore there are various departments within the
organisation that has work together for the better performance and productivity. And in this
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organisational culture also played the vital role in to improved the performance and provide
support in to making the positive workplace. Along with this organisational culture also has the
major role in the organisation to provides the continuity in the operations of the business through
profit and loss account, balance sheet, cash-flow statement and many more.
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REFERENCES
Books and Journals
Shepherd, and. et. al., 2020. The types and functions of social supports used by parents caring for
a child with autism spectrum disorder. Journal of Autism and Developmental
Disorders, pp.1-16.
Botayeva, S.B., Anarbayev, B.Y. and Botayev, B.B., 2018. MAIN TYPES AND FUNCTIONS
OF LOGISTIC SYSTEMS. In INDUSTRIAL TECHNOLOGIES AND
ENGINEERING (ICITE-2018) (pp. 188-191).
Singh, S. and Manhas, V.S., 2018. Ranking of Functions in the Central Business District (CBD)
of Jammu City. International Journal of Social Sciences. 7(1). pp.13-21.
Plester, B., 2016. Execution of a joke: Types and functions of humour. In The Complexity of
Workplace Humour (pp. 39-66). Springer, Cham.
Sanyal, T., 2017. Jute Geotextiles: Its Types and Functions. In Jute Geotextiles and their
Applications in Civil Engineering (pp. 19-31). Springer, Singapore.
Preda, F.R., 2018. TRANSPARENCY IN EXERCISING PUBLIC OFFICES, PUBLIC
FUNCTIONS AND IN BUSINESS ENVIRONMENT. Challenges of the Knowledge
Society, pp.1109-1120.
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