Forms of Business Organisation

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1. Sole trader businesses are the easiest to set up because there is no complex paperwork. The business and the owner are the same person in law. The sole trader does not have limited liability which means that they are responsible for all the debts of the business. The sole trader has to produce an annual accounting return for the Inland Revenue.

2. Partnerships are set up by a Deed of Partnership which is a document made out by the partners and witnessed by a solicitor. This Deed sets out the legal relationship between partners e.g. how profits will be shared out, responsibilities of partners etc. In traditional partnerships the partners had unlimited liability i.e. they were jointly responsible for the debts of their partnership. In
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These departments will provide back up support and training.

Organisations are structured in different ways:

1. By function as described above

2. By regional area - a geographical structure e.g. with a marketing manager North, marketing manager South etc

3. By product e.g. marketing manager crisps, marketing manager drinks, etc

4. Into work teams, etc.

Reporting in organisations often takes place down the line. An employee might be accountable to a supervisor, who is accountable to a junior manager, who is then accountable to a senior manager - communication and instructions can then be passed down the line.
Formal organisation

An organisation chart outlines the formal chain of command and communications within an organisation. This is the official structure that is backed up by rules and procedures. You must remember however, that what you see on paper is often very different from the way that things work in the real world. An individual with a strong personality can play an important part in the running of an organisation, although he or she may appear near to the bottom of the chart.

In the formal organisational structure there will be patterns of communication and procedures for decision making. Some organisations will have tall structures with lots of layers of command. Other organisations are relatively flat.

Although the managing director
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