Discuss what organisations are and why do they exist. Explaining how they tend to change over time.

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Discuss what organisations are and why do they exist. Explaining how they tend to change over time.

In this essay I will discuss on what organisations are and why exist and I will explain on how they tend to change over time.

“An organization is a group of individuals who work together toward common goals. An organization can be for-profit, such as Microsoft, or not-for-profit such as a public university.”

The private sector is controlled by groups of individuals were the aim is to make profit, were the government has no control.

A Sole Trader is in the private sector, sole trader is the most common business in the UK, e.g. plumbers, builders. A Sole Trader is owned and controlled by one person.  A Sole Trader financial ability is retained and personal and benefits financially from success. A sole trader has unlimited liability where its personal belonging is at risk.

A sole trader has control of decisions in the competitive market were rapid management skills can be operated. The benefits of a Sole Trader is that personal barrier is built with the customers were voice of mouth can be formed.

A Partnership is owned by 2 or more people (2 – 20) where the owners run and control the organisation.

A partnership is can be easily formed due to partners input of finance, however its

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similar to the Sole Trader where as the partners are financed by their own retained earning and personal borrowing.

Partnerships has unlimited liability. The benefit of a partnership is that the income can increase future of growth, and additional skills and ideas inputted into the organisation. A partnership means that profit has to be divided between partners were problems could be formed.

A public limited company is owned by shareholders. A Public limited company is financed by the use of its floated shares traded in the stock market by the general public.

A PLC can easily raise ...

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