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University of West London Ba30591E - Introduction To Business
University of West London Ba30591E - Introduction To Business
University of West London Ba30591E - Introduction To Business
This report will also different types of business organizations. It will also explain why partnership business is
better than sole tradership. It also discusses what kind of strategy can be used in a partnership business to reach
out to potential customers. Furthermore the best organizational structure and their main functional area’s
importance are highlighted at the end.
TYPES OF BUSINESS ORGANISATION
Sole tradership: Partnership business. Joint stock business
• Formed and operated by sole • 2 to 20 people start this kind of • Is entitled to an artificial identity
proprietorship (Ross, Westerfield and business by concluding an agreement formed and operated under the law.
Jordan 2008). among themselves (Ross, • According to the law, this business
•Only the owner has to bear both the Westerfield and Jordan 2008). enjoys the status of eternal existence.
profit and loss of the business. • The main basis is the agreement • Private Limited Company can have 2
•Employees and customers have a between the partners to 50 members on the other hand, in
direct relationship with the employer • Managed by one partner on behalf of a public limited company, the
(Ross, Westerfield and Jordan 2008). all partners or on behalf of all. number of members is limited to a
•Unlimited liability of the owner. • Profits and losses are distributed minimum of 6 and maximum
•Owners and business entities are among the partners as per the number is limited by shares
identical. agreement. (Almayeva and Tokareva 2013) .
• The success of a business depends • Limited liability
on mutual trust and confidence. • Large scale organization.
• Stability is uncertain as there is no • Independent nature management.
separate entity (Ross, Westerfield
and Jordan 2008)
TYPE OF BUSINESS ORGANISATION
While partnership business is in many ways better than Sole Tradership, there are some disadvantages. As such, in
most cases this type of business cannot continue for long due to disputes between the partners.
This is why one should contract this business with very close or trustworthy persons.
The business should start with a written agreement which later serves as evidence.
REFERENCES
Almayeva, Y.O. and Tokareva, K.G., (2013), ‘Features of Public Enterprise as One of the Types of a Joint-Stock
Company’, Actual Probs. Econ. & L., p.195.
Martinuzzi, B. (2021) The Advantages and Disadvantages of a Partnership [Online]. Available at:
https://www.americanexpress.com/en-us/business/trends-and-insights/articles/what-are-the-advantages-and-
disadvantages-of-a-partnership/ [Accessed 9 November 2021].
Ontario Co-operative association (2021) WHAT IS A CO-OPERATIVE? [Online]. Available at:
https://ontario.coop/what-co-operative [Accessed 9 November 2021].
Ross, S.A., Westerfield, R. and Jordan, B.D., (2008), ’Fundamentals of corporate finance. Tata McGraw-Hill
Education’
Wawrowski, B. and Otola, I., (2020) ‘Social Media Marketing in Creative Industries: How to Use Social Media
Marketing to Promote Computer Games?’, Information, Vol.11, NO 5, p.242.