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Types of Business Organisation
|1.||Types of business organisation||3|
|1.3.||Private limited companies||3|
|1.4.||Public limited company||4|
|2.1.||The resources of the business||5|
|2.5.||The human resource function||6|
|2.6.||The marketing function||6|
|2.7.||The administration function||7|
|2.8.||The research and development function||7|
The simplest form of bisiness organization is the sole trader. One person who provides the capitas, has complete control of the business keeps all the profit, and has unlimited liability. It is easy to start this type of business, but it can be difficult to complete with large firms, and difficult to raise money for expansion.
This is a business that’s a lot like a sole trader, but more than one person owns it. Again, there are fewer costs and requlations, but still it is difficult to raise as much money as a large business. Also the owners have unlimited liability, as does a sole proprietor: any debts incurred by the company must be paid by the owners, even if they have to use their own personal property. Partnerships normally operate in local or regional markets, though advanced in information technology are allowing many professions to offer their services more widely.
Private limited companies
Shares can be transferred privately. All must agree. Private limited companies are suitable for small and medium-sized operations. This type of business organization is particularly suitable for family firms and for small enterprises involving just a handful of people. Private limited companies find it easier to attract capital because investors have the benefit of limited liability and this access to finance makes it simpler for the business to grow.…
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