Understand The Business Environment Essay

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Recommended: Internal and External Factors

The way that any organisation operates, is dependent on the type of business, size and the positioning of the company within their sector. These factors will dictate any impact of potential external forces and influences.
An organisation works within a framework provided by various elements of society. Elements that lie outside an organisation are called external environment. An organisation may create an environment internal that affects the various subsystems of the organisation.
An organisation needs to properly understand the environment for effective management.
Factors that control an organisations environment are classified into internal and external factors. General environment: political/legal, economic, socio-cultural, and technological. …show more content…

This individual in entitled to keep all profits, after tax has been paid. The sole trader is also liable for all loses.
A partnership is a business or firm that is owned and run by two or more partners.
As above, a private limited company is a small business, that is owned independently by shareholders and their shares do not trade on the stock exchange. Their main purpose is to make a profit.
A public limited company is usually a large, well known business that provides a service funded by taxes and owned by the government. A public limited company’s main purpose is to provide a good value service to the public that is affordable and falls in line with the government’s targets and annual budget requirements.
A charity is an organisation that provides a free service, funded by donations and fundraising, any money made, is put back into the charity.
Corporations have limited liability. Ownership liability is the extent to which the owners of a business are personally responsible for business debts.
A sole trader must register their business and register with HM Revenue and customs, as self-employed for tax purposes. The liability is completely unlimited and personal to the owner of the business – they are responsible for any debt the business may

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