Forms of Business Organisation

| A general partnership is comprised of a group of two or more individuals who enter into an agreement to start a business. The partners and the business are legally the same. The partners enter into an agreement called the articles of partnership and are typically equally active in the business and the business’s management, unless otherwise stated in the partnership agreement. All profits and losses are shared by the partners in a joint business venture.

Having organizational structure also entails having what is called an organization chart. An organization chart is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. Sherill believes you need an organization chart so that you are aware of who to report to. Where Sherill is currently employed, has not had anything set up this way in a few years. People are not sure who they are to report to and often report to whoever they feel like. She has seen a few employees leave the company for other jobs because they felt that their job lacked structure and it was difficult for them to work in a place like that.

The most popular style of small business enterprise, it’s simple to set up and does not require any formalities. Sole trader often is a one person who manages and owns the company. They take all the profits, but must also include all losses. Indeed, if the only operator becomes insolvent personal assets may be used to satisfy creditors, such as a house, car, etc. They are personally responsible for all indebtedness of the company and have unlimited liability.

The forms of business organization that Helena and Francine could form are a sole proprietorship, a partnership or a corporation. First, they could start a sole proprietorship, which is a type of business that one person owns and operates. They could do this type of business if only one of them plans to operate the business, and only one of them plans to be liable for it.

• operations Organisation charts are diagrams that show the internal structure of the business. They make it easy to identify the specific roles and responsibilities of staff. They also show how different roles relate

Organizational structures have been used for centuries to help people within organizations to understand who holds authoritative roles and how it is ordered, who has certain responsibilities and how they are organized and executed, and how communication flows between the tiers of management (“BusinessDictionary,” 2013). There are many types of organizational structures; the common ones are functional, divisional, and matrix organizational structures.

An organizational chart shows the internal structure and hierarchies of an organization, like a business, school, or government entity. It creates an easy visual depiction for the ranks of different people, jobs, and departments that make up the organization. Orgizational charts also help determine how authority and information flow between people and departments. (Lucidchart, n.d.)

In partnership, company are claimed and keep running by individual accomplices who are actually and together in charge of the activities of their kindred accomplices which somewhat represents the significance of a partnership assention or deed . Partnerships don't need to distribute or review their records, however expansive they get, despite the fact that there is a move towards expanded straightforwardness.

Sole traders have unlimited liabilities,meaning that in terms of law there is no separation between them,hence the sole trader is also liable for the debts incurred within the business, which makes it very risky to run for a long-term.

A partnership is a business organization where the partners own the business together and are

People who want to run and operate a business ,want to have a total control, prefer to work on their own or employ often just one or two employees, make all the decisions by themselves and do not want to invest much money into the business are inclined to work as a Sole trader. This business is known as a ‘one-man business‘ and must be registered for VAT, must pay income Tax and NI and have a license if needed (sale of alcohol or planning permission) . The Sole trader can be businesses like plumbers, bakers, or hairdressers. The benefit of this is that the owners can keep all of the profit that the business makes. They don’t need to ask anybody before making any decisions and furthermore, they do not need to publish their accounts.

A partnership, Consists of two or more people who share the ownership of a single business. Like in a proprietorship, the law does not distinguish between the business and its owners. The Partners should have a prearranged agreement of how decisions will be made for their company, the profits will be shared, how disputes will be resolved, how new partners will be brought into the partnership, how partners can be bought out, or what steps will be taken to dissolve the partnership when needed. Although it sounds silly thinking about dissolving the company before its started, many companies break up in times of

Organisational Structure – It is a structure which is used to elaborate ranking in an organisation. It is also define as an organizational structure which defines how activities such as task portion, division and guidance are directed towards the achievement of organizational purposes.

The sole proprietorship is an unincorporated business where the owner will pay taxes on all income that is received from the firm. They will assume any legal and financial responsibilities that are incurred during this process. The biggest advantages are that very little paperwork is needed to begin operations (most notably: state and local tax / business licenses). The largest drawback is the owner is responsible for all debts of the firm. ("Sole Proprietorship," 2012)

Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. Organizational structure also determines how information flows from level to level within the company (investopedia.com, 2017). If one level or department does not undertake its function accurately the entire business suffers, because all the departments interrelated to each other. There are generally four types of organizational structure: