Name: Ademoye Tunde Adebowale
Course Name: Business Environment
Unit No: Unit 1
Tutor: John Oakshott
1.1 An organisation comprises of two or more people, engaged in a systematic and coordinated efforts, over a long period of time, in pursuance of goals which convert the resources into goods and services, which are needed by the consumers.
The goal is to create and achieve an arrangement of positions and responsibilities by means of which organisation carry out its work or activities.
There are different types of organisation which are as follows;
a. Sole Propertorship/ Sole Trader: this form of organisation is widely regarded as the simplest form of organisation. It involves one person who own and runs the operations. In most case it requires a small amount of capital to set up.
• It is easy to set up and develop on decision of the proprietor to enter into business and to start trading.
• There is no start up fees and relatively little administration in setting up.
• They are free to use any business name they choose.
• They are seen to lack the prestige associated with certain business.
• The liability of the owner of the business is unrestricted.
• The business and its owner are regarded as one so also on taxation.
b. Partnership: this is a form of organisation which is characterised by having two to twenty people coming together to form a business. In this case, it is typical for each partner to work and manage the operations on day to day basis and share in the profits. One of its advantages is that there is joint decision making unlike proprietorship. Also the death of one of the partners cannot lead to the end of the business.
The disadvantage is that it requires a lot of resources to engage in the services of solicitors.