Essay On Business Organization

Forms Of Business Organization Essay

From a legal point of view, there are four types of businesses:

1. Sole proprietorships;

2. Partnerships;

3. Corporations; and

4. Co-operatives.

A brief description of each type is followed by a summary of their advantages and disadvantages. For specific information on how or where to register or incorporate a business, contact your local CBSC.

Sole Proprietorships

This is the simplest way to set up a business. A sole proprietor is fully responsible for all debts and obligations related to his or her business. A creditor with a claim against a sole proprietor has a right against all of his or her assets, whether business or personal. This is known as unlimited liability.

This type of business comes under provincial jurisdiction. If the proprietor chooses to carry on a business under a name other than his/her own, he/she must register with the province. Your business name registration, or renewal of registration, will be valid for a certain number of years. Call your local Canada Business Service Centre to determine when business name registrations need to be renewed in your jurisdiction.

If a sole proprietor establishes a business in his/her own name, without adding any other words, it is not necessary to register the business.

Partnerships

A partnership is an agreement in which two or more persons combine their resources in a business. In order to establish the terms of the business and to protect partners/shareholders in the event of disagreement or dissolution of the business, a partnership/shareholders agreement should be drawn up with the assistance of a lawyer. Partners share in the profits according to the terms of their agreement.

General Partnership

All members share the management of the business and each is personally liable for all the debts and obligations of the business. This means that each partner is responsible for and must assume the consequences of the actions of the other partner(s).

Limited Partnership

Some members are general partners who control and manage the business and may be entitled to a greater share of the profits, while other partners are limited and contribute only capital. Limited partners take no part in control or management and are liable for debts to a specified extent only. A legal document, outlining specific requirements, must be drawn up for a limited partnership.

Corporations

A corporation is a legal entity that is separate from its owners, the shareholders. No shareholder of a corporation is personally liable for the debts, obligations or acts of the corporation. This type of business can be incorporated at either the federal or provincial level.

A corporation is identified by the terms "Limited", "Ltd.", "Incorporated", "Inc.", "Corporation", or "Corp.". Whatever the term, it must appear with the...

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Good leaders in an organization set directions for the rest of the employees in the organization; they help them see what is lying ahead, visualize what might be achieved, encourage and inspire other employees in the organization. Strong leadership in an organization helps in pointing other employees in one direction and harnesses their efforts jointly thus energizing them towards specific goals.

For effective running of a business organization, there must be a high demand for strong leadership. Leadership is important and demanding for organizations. A leader in an organization controls the organization by supervising actions that employees take, making sure that they do what is right and help in solving problems whenever they arise. Good leadership is essential in facilitating change in a business organization. A good leader will be able to take any information given and change it into an effective format that will make the change acceptable.

Strong leadership helps in maintaining good communication in the organization. Effective communication brings development to an organization since the employees are able to work together for the benefit of the company. Communication after, during and before the process of change is important because it makes sure that those changes are beneficial to the organization. Strong leadership is a key to success in a business organization as it makes effective and efficient use of the organizational resources, both physical and human.

Business organization with a strong leadership has good understanding of goals and objectives of the company. Although a business mainly focuses on making good profits, there are other goals that the business needs in the competitive environment of the business. Strong leadership is vital for the organization to develop new skills of staff and employees and makes work of the organization more efficient. Strong leadership is therefore a good thing and should be implemented.

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