Classifying Business Organizations Business organizations can be classified in a variety of ways depending on its size, sector, legal status etc. These classifications differ from one firm from another. Legal status has an important bearing on the environment in which the business operates. It is important to have a comprehensive knowledge of the advantages and disadvantages of the several legal forms so that managers and directors can decide which legal form their firm should adopt. The sole trader is the simplest business to develop and has very little legal formalities, obligations or constraints. A sole trader or sole proprietor is one who individually runs business with personal funds. Remaining as a sole trader has many advantages, mainly being that you are able to give a more personal service to your customers and you are able to make changes within your business very quickly due to there is little or no bureaucracy there being only one person to make the final decision. Other advantages include having complete control over the business and its profits. However, as the expansion of the business depends on the amount of capital you are personally able to inject, one may find investing in the growth of my business very difficult, as capital is often difficult to find. Thus competitors have greater access to investment and are able to adapt more quickly to market demands. A sole trader is also fully liable financially and thus losses may lead to bankruptcy or loss of personal possessions. A partnership is an unincorporated business that is carried on by two o... ... middle of paper ... ...asing and joint ventures are other two legal forms similar to franchising. Licensing is when one country (the licensor) authorizes a firm in another country (the licensee) to use its intellectual property. Joint venture describes a jointly owned business venture involving more than one organization. Therefore when choosing a desired legal form firms need to realize the degree of personal liability as in sole trader, the willingness to share decisions as in partnership, the legal requirements required in limited companies and the need for separate identity as in a franchisee. In the end whatever legal status a firm undertakes it is ultimately the environment the business entity functions it that influences the decision of the manager or director about which legal form to choose and implement in their organization.
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
Capital is a major factor for decision making. Since the business involves a group then the three forms of business exposes the group to a greater capital availability. The liability of members is also an important factor. The partnership offers unlimited liability to the members of the partnership while the corporation and Limited Liability Company allows the members limited liability and thus their personal assets cannot be interfered with in the event of a liability. The decision making process is for the business associations but the input of all members results to the making of good and informed decisions. Finally, the taxation practices for various forms of associations informs the decision. Corporations are often taxed twice whereas the LLC and partnership business is taxed
An organizational analysis is an important tool to become familiar with how medical businesses and organizations are able to meet standards of care, provide services for the community and provide employment to health care providers. There are many different aspects to evaluate in an organizational analysis. This paper will describe these many aspects and apply the categories to the University Medical Center (UMC) as the organization being analyzed.
Partnership is generally straightforward and need low costs to be framed it just require an understanding between the parties. All partners evolve in the administration and making the decision as they all have the right to help in any decision. As they are a number of partners that implies they have a much greater source of funds than a sole trader. On the other hand, the Disadvantages of partnership are that it doesn 't have a legitimate identity of its own. The survival issues, as the partnership will be broken up in light of the death of the partner or regardless of the fact that the partner went insolvency. Endless obligations, where the debts in partnership might be taken generally as it could be taken from their own assets to settle the
The three perspectives can be compare and contrasted by using the organization structure which is the social and physical structure. Social structure is defined as connection and interaction between employees each department in an organization whereas physical structure is the actual layout of organization (Lecture slides, week 4, 2014, structure, culture and design). The social structure concept is developed by Max Webber for the purpose of looking through the division of labor, hierarchy of authority and corporate rules and procedures (Hatch and Cunliffe, 2009, p.103). Therefore, from a modernist perspective, it is clear that, structure differentiates through characteristic such as a flat or tall organization structure. Tall organization structures are those with divisions of labor through having many vertical hierarchy levels from top to bottom with only a few departments. Tall organizations on the other hand are those structures with a big number of divisions while having less hierarchical levels (Lecture slides, week 4, 2014, structure, culture and design). Modernists believe ...
Exploring the Types of Business Organisations There are two Business Sectors: Public Sector These are businesses owned and run by the government. Some examples of Services provided in the public sector are the postal service, schools, colleges, housing environment, some bus and train services, fire, police, ambulance and local justice and social services. Their method of raising capital is different as Private Sector businesses have to raise their own capital e.g. their own money, a bank loan etc. The Public Sector business can get the money required from the Treasury or from local rates.
The Corporation needs to file with the state the articles of incorporation and follow a more formal protocol for business than a sole proprietor or partnership. A partnership and sole proprietorship are each less expensive and no more complicated than a verbal agreement or handshake.
A partnership is an association of two or more people who typically know and trust each other and therefore come together to set up and carry on a business. The partners have an equal control over the company’s affairs and typically contribute an equal capital amount. Incomes and losses are also equally shared . A trust is an obligation given to an appointed person, the trustee, to hold the assets and property of the business on behalf of the others who are termed as beneficiaries. The trustee could be a company, sole trader, partnership of individual and has the discretion over running and managing the trust including matters such as investments, debt, and income generation. The beneficiaries are all those who receive the income or incur expenses. A limited liability company is a complex business structure whereby it is a separate legal identity, separate from the partners. The company is owned by the shareholders and managed by the directors.
The Different Ways Organizations Can Be Structured and Operated There are four major ways a company - organization can be structured and operate. P.C.G (o) Ltd I would dare say that is structured and operates with the functional structure. In order to make it clear and understandable I am analyzing here below the four ways that organizations can structure and operate. We will observe that all four structures have there advantages and disadvantages. In order also to assist you understand better the differences of the four ways that organizations can be structured see in Page 4 & 5 Figures 1,2,3 which are the layout of the organization charts for each structure: 1.
In all industrial companies there are a number of key tasks or function that must be carried out regularly. Stock must be bought, the bills must be paid, the customers have to be served and the customer enquiries have to be dealt with. In a small organisation all the jobs may be done by one or two people occasionally, however in a large organisation people have to be specialised in many different individual tasks. A big company is usually easier to identify separate functional areas because employees work together in departments. Each individual department carries out tasks to relate to their particular area. The main purpose of functional areas is to ensure that all important business activities are completed. This is essential if the business is to achieve its aims and objectives.
There are many types businesses in this world; these include Sole trader, Plc, Ltd, Partnership, Co-op and franchise. These types of businesses are all different from each other. Some of them need just one owner, some have hundreds.
Key Features of a Range of Commercial and Non-Commercial and Commercial Organizations An evaluation of the key features of a range of commercial and non- commercial organisations to illustrate differences in their funding and their business objectives PRIVATE SECTOR (Commercial) Private sector are companies owned by a particular group of people they mainly not government companies, the owners are individuals and can range from small one-person businesses to large multinational corporations who they main mission of the organisation is to generate profit and providing excellent service to their customers. Their other main objectives is to produce goods or services that satisfy their customer needs, most business organisations owned and controlled by private individuals strive to make and improve profits. Public Sector (non-commercial) Non-commercial organisations can either be in the public or voluntary sector mainly their objectives is to provide service that is in the public interest. Some services may be provided free at the point of use, such as the tourism concern organisation they work with people in order to promote tourism that benefit their communities their also work with the tourism industry encourage them to put fair trade principles into practice, the public sectors don't have shareholders but are financially supported through tax or the contribution of the public. What each of the following terms mean and giving examples of each from the Travel and Tourism industry.
Companies are enterprises, also the legal person, so companies are business entity. It’s also as the business entity, different with other non-business legal person in sociality, for example: Swansea University and Morrison Hospital. Company as business entity, the distinction with non-business legal person is business is profitable legal person; A company is an artificial person. Once it is incorporated by complying with the prescribed procedure, its come into being and is a separate legal entity from its members and officers. This principle distinguishes a company from a partnership.
Organizational identification (OI) within the business model provides a structure that represents a framework of task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. This model provides the context to address OI within this business dynamic, allowing researchers to address the larger OI phenomenon within more narrowly-defined areas of an organizational edifice such as individual, team, and network.
Which of the organizational structures does your organization operate under? My organization is mostly decentralized with a variable degree of specialization. However, my organization is large enough that the other elements of organizational structure can be observed as well. The term organizational structure is defined as: how job tasks are formally divided, grouped, and coordinated. There are six key elements concerning an organizations structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization (p. 231).