*Identification of the purpose of different types of organisation We have two main types of business organisations. Which are Profit-making organisations and Not-for-profit organisations. In the profit making organisation, we have the Sole traders, Partnerships and LLPs, Companies and The Franchises. While on the Not-for-profit organisation we have the Quangos, Voluntary, public sector bodies and the charities. *SOLE TRADER- This is a simple business that is easy to set up, and which is usually a small business. It is owned and financed by one individual, who receives all the profit made by the business, even though than one person may work in the business. Purpose – A sole trader is to provide a service for a client or customer and charge for that service. *Partnerships and LLPs- This is formed when a business is set up from between 2 to 20 people. These partners will have a legal agreement drafted up for them specifying rights and duties. However still there is no legal distinction between the owners and the business. Purpose- some of the purpose are to enable the partners share skills and the workload, this also may be easier to raise the capital needed. *Companies- A company is a legal body in its own right with an existence that is separate in law from its owners. It is owned by shareholder who appoints Director to give direction to the business. We have three types of companies. These are Limited companies, Private limited companies and Public limited. Limited companies- This is a legal entity separate from the owners of the business.
Please join StudyMode to read the full document