Business Environment

Topics: Market economy, Corporation, Supply and demand, Mixed economy, Planned economy, Business / Pages: 33 (8087 words) / Published: Mar 4th, 2013
Business Environment

Introduction

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 affect the demend for the their products, how the competitors behave or the change in government policy. The 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 owned by and controlled by one person. The individual can take all the profit from the organization, however they are responsible of any debt and losses because they have unlimited personal liability.
In terms of starting up the business the sole owner has to finance it themself. It is easy to set up as a sole trader but on the other hand there are some risks involved because you are liable for the business, responsible for the business so you are the one to blame if things go wrong.
The purpose of a sole trader is to provide goods or services and get paid for it. Examples of sole trader businesses are small independent retailers, beauticians and internet entrepreneurs.

Private limited company

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