Comprehensive Examination of Business Structures and Performance

This assignment explores various business structures, including sole traders, partnerships, private and public limited companies, and cooperatives, detailing their characteristics, advantages, and disadvantages. It also examines different organizational structures, such as functional and divisional structures, and their impact on business performance. The assignment further delves into learning and growth within business organizations, emphasizing the importance of internal processes and financial resources. It provides examples to illustrate each concept, offering a comprehensive overview of how different structures and resources influence a business's success and operational efficiency. The content covers key aspects such as liability, management, and resource allocation, providing a solid understanding of business fundamentals.

1 - EXAM

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
QUESTION 2: DIFFERENT TYPES OF COMPANIES...............................................................3
To explain different companies from sole traders to Cooperatives and Limited Liability
Partnerships......................................................................................................................................3
1).................................................................................................................................................3
2).................................................................................................................................................3
3).................................................................................................................................................4
4).................................................................................................................................................4
5).................................................................................................................................................5
Question 3: Understanding the different structures of the business and its affects.........................5
1. Defining functional structure with examples and its affect on business performance............5
2. Defining divisional structure with examples and its affect on business performance............6
3. Explaining learning and growth in business organization with example................................6
4. Explaining internal process of business and its affect on process of business........................6
5. Explaining financial resources with examples and affect on business...................................7
REFERENCES................................................................................................................................8
.

QUESTION 2: DIFFERENT TYPES OF COMPANIES
To explain different companies from sole traders to Cooperatives and Limited Liability
Partnerships
1)
It is type of business structure that is solely run by one person and is based on simple structure.
Also, here it one owner that pays personal income tax on profits that is earned within the
business. The three main character tics that are seen in the sole trader business are as follows:
Full control: It is having the full control over the business and its activities. Furthermore, the
sole trader is fully responsible for all the business decisions that are taken by him and further
sole trader decides how it wants business to be grown and profits needs to be earned.
Unlimited liability: sole traders are responsible for all the debts that occurs during the lifetime
of the business (Cribb, Miller and Pope, 2019).Hence it can be said that there is no limit to
amount of debt that needs to be paid by the sole trader as he is personally liable for losses and
also at certain time personal assets might be seized to pay for all the losses that is incurred by the
business.
Minimum filing requirements: A sole trader does not require much paperwork to operate or
start up the business and also they are not required to file documents and other accounts. Thus,
such type of ease help the business run more smoothly that other forms.
For example: most of the people involved in business like plumbers, hairdressers or
photographers etc. in UK fall into this category.
2)
Partnership is formal agreement between two or more parties to manage and share certain
amount of profits. Also, in partnership all the partners share profits and liabilities equally to run
the business for longer time. Moreover the major character tics of this firm are as follows:
Registration of firm: It is very impotent for nay kind of Partnership firm to get them registered
under the compulsory act (Sheth, 2020). Also, the partnership deed is required so that business
might be brought to existence.

Nature of liability: All the partners in business are liable to any kind of debts that are occurred
within the business at any point of time. Furthermore, the creditors of the business have the right
to recover the debts from private property of any of the partner when the assets are not sufficient.
Association of Two or More Persons: Partnership is firm where the work is not carried out
solely like sole trader but is agreement between at least two persons. Also, the persons becoming
partners must be competent to enter into any kind of contract
For example: Law firms, real estate and physician groups etc. are some of the examples of
partnership business.
3)
Private limited liability business is type of business where the amount of liability among the
members is limited to the shares invested by them in the business. Also, the shares of private
limited cannot be publically traded (Hrechyshkina and Samakhavets, 2019). Moreover, major
features are as follows:
Perpetual succession: It means that company will continue to run over the years irrespective of
any kind of the insolvency, death or bankruptcy of any of its members. Thus, it life continues
forever without any kind of issues.
Name: This type of business need to have the name private limited at the end of the company
name to make people easily understand in name of law. Also, this Pvt.Ltd need to be present
there in all the official communication and any kind of the registry form of the company.
Prospectus: It is the detailed statement that invites share from the public but in private limited
this cannot be possible as public does not have right to purchase the shares of the company.
For example: Brakes Group, John Lewis Partnership, B&M Retail are few of the examples of
the private limited company that are successfully operating in UK under various industry sectors.
4)
Public limited liability business is type of business where certain amount of shares is offered to
the public and is considered as owners of the company to the extent of shares hold by them.
Also, public cannot be held accountable for the business loss exceeding the amount of shares
paid by them. Furthermore, the following features of this are as follows:
Separate legal entity: Public limited company has separate identity from its members and hence
shareholder of the public limited company might easily transfer its amount of shares to the public
during any point of time (Characteristics of Public Limited Company, 2022).

Limited Liability: Also, the liability of the members is limited and therefore all the losses are
distributed in proportion according to the shares hold by each member of the company.
Borrowing capacity: another major feature of this type of business is that it has the capacity to
borrow from various sources and raise the money for the business unlike private that is
dependent on few of its members. Also, banking and other financial institutions easily provide
loans to this business.
For instance: easy Jet Plc., Marks & Spencer Group Plc. and AstraZeneca Plc. Etc. ate some
examples of the public limited firm in UK
5)
Cooperative is type of business that is owned as well as operated both for the benefit of its
members. Also, this type of business is formed when the group of several people have identified
some kind of unmet needs that they wish to fulfil during certain point. Furthermore, it might be
well understated through following points:
Absence of exploitation: A cooperative society is one that denies the exploitation of its
members (Nunes, Abreu and Saraiva, 2021). Also, the society takes care of the benefits of its
members.
Organisation of the poor: It has no scope for the rich membership of people. Also, major
function is providing credit facilities for any productive purposes.
Membership is voluntary: Also, in context of membership it is voluntary and its corporative
society has the definite objectives and those who found suitable opt for the membership.
The role of bank: Also, for any co-operative the government is active in providing the required
support and subsides for its growth in the future.
For instance: Channel Islands Co-operative Society, Heart of England Co-operative Society, East
of England Co-operative Society and much more are the examples of cooperatives in UK
Question 3: Understanding the different structures of the business and its
affects
1. Defining functional structure with examples and its affect on business performance
Functional structure refers to the type of structure that is used to organize the different
department that is basically based on the expertise in the organization. It basically depends upon
the size of the business and the capital required in order starting the business. It is also depends

upon the products and the production method used that helps to classify the business (Scheefhals
and MacGillavry, 2018). This helps the person to know about the capital and size in order to start
the new business. There is the great and positive impact of the functional structure as it helps
them to have the proper management in the company. By this the organization under different
department it helps the leaders to have the proper working in the company.
For example: production department, finance department, HR department, etc.
2. Defining divisional structure with examples and its affect on business performance
Divisional structure refers to the business structure that helps the company to be in the
different segments which helps them to have proper working. By having the division of the
department or of employees it makes them to have proper and specific working in the company.
The employees are provided with the monthly salary (Islami and et.al., 2021). This used to
motivate them in order to have the better production in the business. The ownership in this
business is basically is in the hands of single owner and the management is controlled by them as
well. This used to have great affect on the business performance as it helps the company to have
the proper management of the work and improves the performance as well.
Example : Accounting department employees, marketers, etc.
3. Explaining learning and growth in business organization with example
The learning and growth are the main perspective of the business organization that helps
them to have full focus on the strategy of the company. These are basically based on the internal
and external skills and capabilities. These are required to have support from the company side
which helps them to create the proper value in the internal process. This helps them to gain
goods profits in the market. If the business is growing it used to have the positive impact on the
profits of the company (Edmondson, 2018). This makes them to grow in the competitive market
and helps them to have better productivity. This used to have the best use of the technology and
used to do innovation in order to have better use of the machines. This used to have specialized
and talented employees that used to produce best quality of work and help them to gain good
profits.
For example: Using the new technology helps the business to grow and learn new things.
4. Explaining internal process of business and its affect on process of business
The internal process refers to the type of business that helps the firm to perform without
the influencing or involvement of the external parties. These are the aspects of the balance score

system which helps the organization to know about the areas that are needed to be improved.
These are the sets of skills and tasks that are needed to be done in order to attain the performance
of the company (Tjahjadi and Soewarno, 2019). The internal process used to have somehow
good affect on the business helps the business to improve the quality of life and helps them to
provide better services and goods in the market. By having the good internal process it helps the
to motivate them in order to have the better production in the organization.
For example, Process improvements, quality optimization, etc.
5. Explaining financial resources with examples and affect on business
Financial resources refer to the resources that are attained and controlled by the past events
that help them to better operations in the company. It is very important for the business to have
the best financial resources as this helps them to have better start up and have the best use of new
technology (Prajogo and et.al., 2018). The business used to have good financial resources that
used to have big operations and have high level of production that also used to do international
marketing of the business. The better operations and productivity helps them to gain the better
profits and to have better performance in the market. By having the good financial resources it
helps the firm to grow and have better operations in the market.
Example: Cash Balance, Bank overdraft, Shareholder’s capital, etc.
.

REFERENCES
Books and Journals
Cribb, J., Miller, H. and Pope, T., 2019. Who are business owners and what are they doing? (No.
R158). IFS Report.
Edmondson, A. C., 2018. The fearless organization: Creating psychological safety in the
workplace for learning, innovation, and growth. John Wiley & Sons.
Hrechyshkina, O. and Samakhavets, M., 2019. Changing business environment in
Belarus. Journal of Geography, Politics and Society. 9(1). pp.1-11.
Islami, E. and et.al., 2021. The Role of Departmentalization, Divisional Structure and Strategic
Business Units (SBUs) in Enterprises in Kosovo. Calitatea. 22(183). pp.18-22.
Nunes, M., Abreu, A. and Saraiva, C., 2021. A model to manage cooperative project risks to
create knowledge and drive sustainable business. Sustainability. 13(11). p.5798.
Prajogo, D. and et.al., 2018. The relationships between information management, process
management and operational performance: Internal and external contexts. International
Journal of Production Economics, 199, pp.95-103.
Scheefhals, N. and MacGillavry, H. D., 2018. Functional organization of postsynaptic glutamate
receptors. Molecular and Cellular Neuroscienc. 91. pp.82-94.
Sheth, J., 2020. Business of business is more than business: Managing during the Covid
crisis. Industrial Marketing Management, 88, pp.261-264.
Tjahjadi, B. and Soewarno, N., 2019. The mediating effect of intellectual capital, management
accounting information systems, internal process performance, and customer
performance. International Journal of Productivity and Performance
Management. 68(7). pp.1250-1271.
Online
Characteristics of Public Limited Company. 2022. [Online]. Available through :<
https://enterslice.com/learning/characteristics-of-public-limited-company/>.