Understanding the Organisational Purposes of Businesses Essay

2310 WordsSep 8, 201210 Pages
Identify the purposes of different types of organisation There are many types of different organisation that has purpose: Private Sector: Sole Trader also known proprietorship, it makeup set up as for-profit business owned by one person. They are tradesmen such as plumbers, electricians, television repair people, local corner shops etc. Partnership: A partnership is a for-profit business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business. The three typical classifications of partnerships are: • general partnerships, • Limited partnerships, • Limited liability partnerships. Partnerships are typically found in professional services such as accountants, solicitors, doctors, dentists etc, where the partners can share expertise and skills. They also can merge their capital together. Franchises are licensing arrangements whereby an individual or group can buy the right to trade and produce under a well known brand name in a given locality. The franchisee benefits from working for themselves while having the privilege and reputation associated with a much larger group. Coca-Cola franchises some of its bottling operations, and you will all be familiar with McDonald's. Many of the McDonald's outlets are franchised, they trade globally. Private companies - are typically small family businesses that want to keep the control of the business within the family. Private companies have Ltd after their name. They are typically smaller than public companies although some like Mars are very large. Shares in a private company can only be bought and sold with permission of the Board of Directors with the shareholders have limited liability. Corporation is a limited liability business that has a separate legal personality from its members. Corporations can be either government-owned
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