Comprehensive Analysis: Business Types, Structures, and Functions

This essay provides a comprehensive overview of various business types, including sole proprietorships, partnerships, and limited companies, highlighting their respective advantages and disadvantages. It contrasts and compares different organizational structures, examining their impact on business operations. Furthermore, the essay discusses key business functions such as production, human resource management, and operations, analyzing how functional management activities influence both the workforce and the organization as a whole. It also delves into the significance of organizational culture, emphasizing how a positive culture contributes to an organization's success by fostering employee engagement, productivity, and overall performance. The report concludes by underscoring the importance of these elements in ensuring the smooth functioning of an economy, supported by industry examples and academic references.

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Essay

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Explain about different types of businesses with certain advantages and disadvantages as well
.....................................................................................................................................................4
Contrast and compare organisational structures ........................................................................6
Discuss different functions of business such as production, human resource management,
operations etc and impact of functional management activities on the people and organisation
within the organisation ...............................................................................................................8
Explain about organisational culture and describe in which manner positive culture impacts on
the success of organisation .........................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business refers to an organisation or enterprising entity which is engaged in industrial,
commercial or professional activities. Businesses are basically for non-profit or profit entities
organisations. Businesses plays a very important role in terms of society and culture in the
general manner. They not only take up most of the time in the most people lives but they also
support in terms of creating innovations and also make important advancements at technological
level(Al-Weshah.,2019). The present report will cover discussion about advantages and
disadvantages of different types of businesses and also compare the organisational structures. In
addition to this, the report will cover analysis about different business functions such as
production, operation and human resource management. Moreover the report will cover analysis
about the organisational culture and in which manner positive culture impacts the success of an
organisation. The report also consist of examples of industry practice from different
organisations.
MAIN BODY
Explain about different types of businesses with certain advantages and disadvantages as well
There are different types of businesses and it is defined into the following manner:
Sole trader: A sole trader is also known as individual entrepreneurship and it is a type of
business which is run and owned by one person where there is no legal distinction between the
business entity and the owner as well. Example of sole trader which include small businesses
such as local grocery store, cloth store
Advantages:
 A sole proprietorship is a type of business which does not have specific registration
requirements and does not have the legal entity which is used by the business.
 A proprietorship is that firm which is not registered with any government entity so the
compliance requirements are very minimal(Aoki and et.al.,2021).
 It is basically easy to operate as the individual person will be the sole decision maker and
also does not consider the plethora of opinions.
Disadvantages:

 The proprietor has to meet out the liabilities at any cost which basically implies that if the
need occurs, their personal assets may have to be used for discharging the liabilities.
 The sole proprietor cannot indulge themselves in the sale of business shares or interest
that deprives the entity from the receipt of any kind of equity funding.
 These firms are basically taxed which is similar to an individual, so the income tax rate
for proprietorship firm is based on the slabs.
Partnership: A partnership is basically the kind of arrangement where parties known as
business partners which agree to cooperate to advance their mutual interests(Buja and
Berbatovci.,2018). Partnership examples can be Red Bull and GoPro
Advantages:
 It basically bridges the gap in between the knowledge and expertise.
 A partner who is prospective who can bring the infusion of cash into the business.
 Business partners also allows to share the financial burden for capital expenditures and
expenses which is required to run the business.
Disadvantages:
 A partnership is also responsible for sharing any kind of business losses and also
responsible for any kind of debts.
 Conflicts can arise in the case of differences of opinion or unequal efforts as well into the
business
 When future circumstances change then individual and its partner wish to sell the
business. This also present some of the difficulties if one of partner is not interested in
selling.
Limited Company: This is a kind of incorporation which limits the amount of liability
that is undertaken by the shareholders of company(Kraśnicka., 2021). Example of Limited
company: Flipkart
Advantages:
 Formation of the own company is basically the limited liability protection
 The image and professional status get enhanced when they start trading as a limited
company.

 Limited companies in UK country have to pay 19% corporation tax on profits whereas
sole trader 20-45% income tax on profits which offers greater flexibility in terms of tax
planning.
Disadvantages:
 These companies must be incorporated at companies house
 The company names are subject to certain restrictions
 Corporate and personal information will be disclosed on public record
Contrast and compare organisational structures
Sole Proprietorship: It is the simplest business structure which involves one individual
who is responsible for daily operations of the business(Nagler and Naudé., 2017).
Partnership: It is simplest type of business organisation for two or more people according to the
case who wish to go into business together.
Illustration : Sole Proprietorship
Source: Saylordotorg.github.io

Limited Company: It is basically the own legal entity business structure which is registered
with companies house- the registrar of companies in United Kingdom country through process of
incorporation(Sommer., 2020).

Discuss different functions of business such as production, human resource management,
operations etc and impact of functional management activities on the people and
organisation within the organisation
There are different functions of business which includes production, human resource
management and operations and it is defined into the following manner:
Production Function: It is basically the method of describing the relationship between
quantity of inputs which is utilised by the company and in which manner it produces them.
Human resource management: It is the division of business which is basically
responsible for recruiting, screening, finding and training the job applicants and also administers
for employee benefit programs.
Illustration : Limited Company
Source : Organisational structure FTL company limited company

Operations management: It is basically responsible for the management of process of
creation of goods and services. This basically involves organising, planning, controlling and
coordinating all the resources which is required to produce goods and services of company.
These functional management activities has impact on the organisation and people at
organisational level into positive manner:
Under production function, it impacts the output of an organisation when it uses inputs on
large scale and it also impact the people through higher level of working when large amount of
goods needs to be produced(Widyarsana and et.al., 2021). The human resource management of
the company impacts the organisation through its effective management of people and people
also get impacted into positive manner when they are effective in terms of their roles and
responsibilities and also their tasks as well. Under management of operations, the people get
impacted in such a manner that they have to follow properly each and every step of production of
goods and services into appropriate manner. The organisation also get impacted in such a manner
that when they receive final goods and services then it will contribute in terms of earning higher
level of revenue at organisational level which results into higher level of profits. So these are the
impact of functional management activities on the organisation and people due to which they can
work towards achievement of goals and objectives of an organisation.
Explain about organisational culture and describe in which manner positive culture impacts on
the success of organisation
Organisational culture: It is the culture which is basically the collection of expectations,
values and practices which inform and guide the actions of all team members. Organisational
culture is important because it basically help in terms of guiding and improving the workflows of
the decision-making process. It also help the team into the context of overcoming the barriers of
ambiguity. The clear culture of an organisation also unifies employees and promotes organised
work structures that helps people in terms of working together with purpose.
Positive culture also impacts the success of an organisation where employees work with
full dedication and potential so that they can lead the organisation towards the road of success.
Organisation with positive culture also promotes the employee performance, engagement and
productivity. This kind of culture also motivates employees to give their best work. The positive
culture of an organisation also increases the job satisfaction level of employees, improves the
team work as well and also raises the morale level of employees.

It also contribute in terms of increasing the productivity and efficiency of employees and
their work performance also get enhanced. A positive workplace environment also reduces the
stress level of employees due to which they can more focus on their work and give the result
oriented working to an organisation. In this way, the positive culture impacts the success of an
organisation.
CONCLUSION
The above stated report concludes that there are different kinds of businesses and every
kind of businesses have their own characteristics. It has been concluded that there are majorly
three types of businesses which include sole proprietorship, partnership and limited corporation
as well. Each kind of businesses have their own advantages and disadvantages as well. It has
been determined that there are different types of organisational structures and accordingly every
organisation execute their work into this practical world. It has been concluded that there are
different kinds of business functions which basically include production, human resource
management and operational part as well. It has been observed that the organisational culture is
very important in terms of achieving objectives of an organisation. The organisational culture has
positive impact on the organisation and their employees as well due to which they can perform
into the out of box manner. So businesses are very important for running an economy into
smoother manner.

REFERENCES
Books and Journals
Al-Weshah, G. A., 2019. The current status of customer relationship management: experience of
small businesses in the Jordanian food industry. International Journal of Electronic
Customer Relationship Management, 12(1), pp.1-20.
Aoki and et.al., 2021. Quantifying Greenhouse Gas and Financial Impacts of Energy Use in L/A
Area Businesses.
Buja, S. and Berbatovci, I., 2018. The level of application of Marketing research, during the
opening phase of small and medium businesses (SME) in Kosovo. Management,
Enterprise and Benchmarking in the 21st Century, pp.47-63.
Kraśnicka, T., 2021. Innovation of Polish family and non-family businesses. Zeszyty Naukowe.
Organizacja i Zarządzanie/Politechnika Śląska.
Nagler, P. and Naudé, W., 2017. Non-farm entrepreneurship in rural sub-Saharan Africa: New
empirical evidence. Food policy, 67, pp.175-191.
Sommer, E., 2020. Mainstream market businesses. In Social Capital as a Resource for Migrant
Entrepreneurship (pp. 207-235). Springer VS, Wiesbaden.
Widyarsana and et.al., 2021. Identification of industrial hazardous waste and material flow
analysis based on hazardous waste producing businesses in Indonesia.