UNIVERSITY OF WEST LONDON

BA30591E – INTRODUCTION TO BUSINESS

NAME: DOINA MOCANU

ROMINA-IONICA MATEI
CONSTANTIN MUSTEATA

ID: DOINA MOCANU - 20003262

ROMINA-IONICA MATEI - 20003012
CONSTANTIN MUSTEATA - 20002988
TABLE OF CONTENT

 Type of business organization.

 Comparison between partnership business and sole tradership ( why partnership better ?).
 Marketing strategy to reach prospective customers.
 Best organizational structure.
 The significance of their main functional areas.
INTRODUCTION

 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

Co-operative business. State enterprise:

• For the benefit of each other, individuals of the same • Formed or owned by state and operated by state.
class constitute this business under the Co-operatives • Entitled to individual legal entity.
Act(Ontario Co-operative association 2021) . • Public welfare is the main purpose of this business.
• Capital is raised by short and equivalent shares. • Possessing eternal existence.
• Not all profits are distributed among the members,
some money is kept in the reserve fund(Ontario Co-
operative association 2021) .
• Run and managed by elected members.
REASONS WHY PARTNERSHIPS BUSINESS IS BETTER THAN SOLE
TRADERSHIP.

Advantages and Disadvantages of partnership business and Sole tradership:

 One of the advantage of partnership business is risks are shared in a partnership business while the disadvantage
of sole tradership sin that an owner in a sole proprietorship business has to bear all the risks (Martinuzzi 2021) .
 Another disadvantage of sole tradership is that in a sole proprietorship everything has to be managed by one
person while in partnership business the work can be shared among the partners.
 The idea that comes from one person is of course insignificant to the idea of more than one person. So it is a
advantage for partnership business.
 Since more than one person invests in a partnership business, better resource can be collected and the scope of
business expanded (Martinuzzi 2021) .
MARKETING STRATEGY TO REACH PROSPECTIVE
CUSTOMERS.

 Through the use of social media such as Facebook, Instagram, Twitter.

 By creating own website As a result, customers will get information about their products or services (Wawrowski
and Otola 2020) .
 By increasing your search engine optimization.
 By advertising their products or services through TV, Social Media, Radio, Billboard Sponsorship etc.
 Partnering with an Influencer or Famous Person so that more people get to know about their business (Wawrowski
and Otola 2020) .
 Using a chat tool to communicate with customers
BEST ORGANIZATIONAL STRUCTURE AND
THE SIGNIFICANCE OF THEIR MAIN FUNCTIONAL AREAS.

Best organizational structure:

 Joint stock business structure is the best for potential investors since it has an artificial personality and eternal
existence, and limited risk (Wawrowski and Otola 2020) .
The significance of their main functional areas:
 Their main fictional areas include marketing, finance, Human resource, management.
 These guarantee that all critical business operations are completed successfully.
 Human Resources can be used to recruit qualified people to run a business.
 Marketing plays a big role in attracting consumers.
 Finance plays a vital role in managing the financial activities of a business.
 Management helps to manage the overall functions of the business properly.
RECOMMENDATION

 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.