Forms of Business Organisation

A sole trader refers to a self employed person who has sole ownership of a bussiness, and so, assumes all responsibility with decision making and keeps all profits. A good example of this would be a self employed tour operator, offering local city tours in London to in bound

| A sole proprietorship is easy to create; there is minimal creation cost and time.The single owner has autonomy in decision making; sole owner makes all decisions related to the business and has complete ownership of business’s finances.

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.

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.

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:

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.

The advantages to the sole proprietorship are single control over the business and its decisions, easy to start up, less regulations and paperwork burden that the other types of business. The disadvantages are unlimited liability for their company debts and actions. The law does not recognize any distinctions between the owner’s business assets and personal assets. Banks are very skeptical about lending to these types business because there is only one person to hold liable for repaying the debt.

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.)

Sole proprietorships are businesses that are owned by a single person. A sole proprietorship is the easiest to form and the most

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

In conclusion if you are confident in your business and you don 't mind the risks the sole proprietorship is by far the easiest way to set up a business. I know a few people that do this and they have said that it is best to always run within their means, which in a way is a good way of doing things. However it does not leave room for you to make your business grow

A general partnership provides the simplest organizational structure for starting a business when two or more individuals decide to associate for the purpose of owning and operating a business. Like a sole proprietorship, a general partnership is not legally separate from its owners (partners). Consequently, partners are personally liable for the debts of the partnership. Unlimited personal liability represents one of the major disadvantages of organizing a business in the form of a general partnership.

* Partnership – Partnership Act (Ontario) defines partnership as a relationship that subsists between two or more persons carrying on business in common with a view to profit.

Sole Proprietorship. This form of private business ownership carries the most simplistic approach, as inherent in the name. One person assumes complete ownership of this business as well as all financial and decision-making responsibilities. It is the easiest to form as a start-up and has the least amount of legal

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.