Business Environment

Topics: Corporation, Types of companies, Limited company Pages: 4 (1030 words) Published: February 13, 2013
Business Environment


All businesses operate in a always changing, growing and in some ways unique environment. In order for a business to operate successfully in its environment, business need to adapt after the environment. It can mean that business have to respond to changing market conditions which efekt the demend for the their products, how the competitors behave or the change in government policy.

Business environment can be divided into two components, internal and external environment. Internal environment is the part where business have control over the changes e.g. management while the external environment is beyonde the controle of business enterprice e.g. government. In addition the ability for a business to operate succesfully depends on how good it can adapt the internal environment to the demands and opportunities of the external environment.

1. Identify the organisational purposes of businesses.

1.1 Identify the purpose of different types of organisations

Here are some diferent types of organisations
* Sole trader
* Private limited company LTD
* Public limited company PLC
* Franchise
* Partnership

Sole trader
Sole trader company is own by and controled by one person. The individual can take all the profit from the organisation, however they are responisbule of any debt and loses because they have unlimited personal liability. In terms of starting upp the business the sole owner have to finence it themselfs they can of course take out a loan to do so. It’s easy to set upp as a sole trader but in the ather hand there are some risks involved because you are liable for the business, responsibule for the business so you are the one to blame. The purpose of a sole trader is to provide service and get payed for it. Example of sole trader businesses are small reailers, beauticions and internet entrepreneurs.

Private limited company LTD...
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