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Understanding business OrganisationsStudent Name:Student ID:
Understanding Business OrganisationsIntroductionThe essay demonstrates an understanding of business organisations and the impact of theirenvironments. The business organisation is referring to as an entity that is formed with a purposeto carry on commercial enterprise. Furthermore, the business environment illustrates the sum ofall the factors that can affect the firm externally. The essay will outline the disadvantages andadvantages of various types of business. The types of business can be named as sole tradership,partnership and limited company. Furthermore, it will also discuss the contrast and comparisonof the organisational structure. In addition to that, various types of business functions and theirsignificance on the functional management activities along with the people of the organisationwill be evaluated. Moreover, organisational culture will be defined, and its positive impact willbe stated based on the success of the company. The essay will also provide appropriate industryexamples to support the practices of the various organisation.Asole trader shipbusiness is owned by the sole trader and formulates the simplest form ofbusiness. The decisions andcontrolling powerare in the hands of the owner. Furthermore, theorganisations do not have any legal entity, as the owner isfully liablefor the decisions taken forthe business [ CITATION Joh212 \l 16393 ]. Theadvantagesof a sole trader are the business isvery simple to set up, and the owner can have complete control over thedecision makingandassets of the business. This type of business has very few reporting businesses. In addition tothat, any loss incurred by the sole trader ship business may be offset against other income.