Identify the purposes of different types of organisation

Introduction

Organisation is a formal systematic structure of relationship, responsibilities and authorities through which specific objectives are achieved. In the context of business it is an organized group of people with a particular purpose.

Forms of business organisation
Almost in every country consists of two business sectors, the Private sector and the Public sector. Private sector businesses are operated and run by individuals or a group of people while public sector businesses are operated by the government. The types of businesses present in a sector can be varying.

Private Sector

1. Sole Traders

Sole traders are the most common form of business in the world, and take up as much as 90% of all businesses in a country. The business is owned and run by one person only. Even though he can employ people, he is still the sole proprietor of the business. These businesses are so common since there are so little legal requirements to set up:
• The owner must register with and send annual accounts to the government Tax Office.
• They must register their business names with the Registrar of Business Names.
• They must obey all basic laws for trading and commerce.
• There are advantages and disadvantages to everything, and here are ones for sold traders:

Pros:
• There are so few legal formalities are required to operate the business.
• The owner is his own boss, and has total control over the business.
• The owner gets 100% of profits.
• Motivation because he gets all the profits.
• The owner has freedom to change working hours or whom to employ, etc.
• He has personal contact with customers.
• He does not have to share information with anyone but the tax office, thus he enjoys complete secrecy.

Cons:
• Nobody to discuss problems with.
• Unlimited liability.
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