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ASSIGNMENT BUSINESS ORGANISATION AND ITS TYPES 1 (Repaired)
ASSIGNMENT BUSINESS ORGANISATION AND ITS TYPES 1 (Repaired)
1. Business Organization:........................................................................................................................3
1.1 Definition:....................................................................................................................................3
1.2 Example:......................................................................................................................................3
2.2 Definition.....................................................................................................................................4
2.3 Purposes:......................................................................................................................................4
2.4 Advantages:.................................................................................................................................4
2.5 Disadvantages:.............................................................................................................................4
3. Partnership Organisation.....................................................................................................................5
3.1 Definition:....................................................................................................................................5
3.2 Purposes:......................................................................................................................................5
3.4 Advantages..................................................................................................................................5
1.1 Disadvantages..............................................................................................................................6
4. Companies...........................................................................................................................................6
4.1 Definition:....................................................................................................................................6
4.2 Purposes:......................................................................................................................................6
4.3 Advantages:.................................................................................................................................7
4.4 Disadvantages:.............................................................................................................................7
5. Conglomerate Organization.................................................................................................................7
5.1 Definition:....................................................................................................................................7
5.2 Purposes:......................................................................................................................................7
6.1 Definition.....................................................................................................................................8
6.2 Purposes.......................................................................................................................................8
6.3 Advantages..................................................................................................................................8
6.4 Disadvantages..............................................................................................................................8
1. Business Organization:
1.1 Definition:
1.2 Example:
2.2 Definition
2.3 Purposes:
Profit Maximization
Breakeven
Survival
Supply Goods and Services
No Sharing of Profit
No Dilution of Power –BYOB – Full Control
Less Legal Requirement
More Sale
Costumer Services
Number of Customers
Easy to Establish
No Corporate Tax
2.4 Advantages:
Profit Retention
Control
No corporate tax payments
Minimum legal cost of formation
2.5 Disadvantages:
Unlimited liability
Limited investment
Limited knowledge and skills
3. Partnership Organisation
3.1 Definition:
3.2 Purposes:
Profit Maximization
Breakeven
Survival
Growth
Market Share
Supply Goods and Services
Easy to Establish than a Company
No Corporate Tax
Divide the Maximum Amount of Risk
To Get Larger Amount of Knowledge & Skills
Registration
Customer services
More Sales
1.1 Disadvantages
Conflicts between partners
Small organizational setup
Unlimited liability
4. Companies
4.1 Definition:
4.2 Purposes:
Customer services
More Sales
Growth
Market Share
Supply Goods and Services
Profit Maximization
Breakeven
Survival
Number of Products
Value Addition
Recognition
Privileges
Credibility
Gain Huge Capital
Limited Liabilities
Separate legal Entity
4.3 Advantages:
Limited liability
Huge investment (more capital)
Separate legal entity
Ownership and control
4.4 Disadvantages:
5. Conglomerate Organization
5.1 Definition:
5.2 Purposes:
Legal recognition
Better supply
Growth
Diversification
Low risk
Privileges
Brand name
6.1 Definition
6.2 Purposes
Customer services
More Sales
Growth
Market Share
Supply Goods and Services
Profit Maximization
Breakeven
Survival
Number of Products
Value Addition
Recognition
Privileges
Credibility
Gain Huge Capital
Limited Liabilities
Separate legal Entity
6.3 Advantages
Limited liability
Huge investment (more capital)
separate legal entity
6.4 Disadvantages
High setup cost
Double/Triple taxation
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