Business Environment

Business Environment

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Business Environment

Business Organization

Definition

The term business is used with transference of goods and services to final users in exchange of currency. Business organization is legally recognized organization created to provide goods and services to the consumer.

Types of organization

Sole proprietorship

A sole proprietor ship is called sole trader and is run by an individual without any legal intervention from the government. The sole owner is liable for all the profit and losses and presents his personal property to parties, in order to fulfill debt. He can do business with the trade name which will help him in opening bank account. (North, 2004, pp. 1-15).

Partnership business

In this type of organization there must be two and more than two owners, who create the organization with the purpose of sharing profit and loss. This form of organization is slightly different from sole proprietorship as it shares the responsibilities along with profit and losses (North, 2004, pp. 1-15).

Co-operatives

A cooperative often referred as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise (Cole, 2011, pp. 1-15).

Charitable

These type of organization are created with the purpose of assisting the members of the society who are unable to fulfil their basic needs, they are normally non-profit organization (North, 2004, pp. 1-15).

Sectors of organization

All the organization is aimed at providing goods and services to specific target market. The organization has been set in a particular market where there are required to offer any product or rendered any services. The organizations are set up in one of the sector such as primary, secondary, and tertiary sector of the society.

Primary sector

Primary sector is comprised of agriculture, mining and fishing and such activities based on using natural resources. They are mostly done in less developed countries, to earn the living and where there less number of alternatives (Susman, 2007, pp. 101-103). For example farming.

Secondary sector

This sector deals with manufacturing industries where raw material is transported to manufacturing concern and gets delivered to the final consumer in the form of finished product. (Susman, 2007, pp. 101-103). Example car manufacturing.

Tertiary sector

Globalization has changed the face of the world; it is transference of goods, services, people and ideas from one part if the world. This has compel the organization to shift from manufacturing industry to service industry as the customers are becoming, more specifics in their demands. This customization has led the company to enter into service sector and made developments to capture the market share and enhanced customer satisfaction (Susman, 2007, pp. 101-103). For example hotel industry.

State owned hospitals

The government of United Kingdom is responsible for providing sound infrastructure where provision of education, medical facility and nationals security. To provide all these facilities government has set up schools, colleges, universities, hospitals, and other institution.

State owned hospitals are government institution which are establishes to facilitate general public. Doctors appointed are paid by government and management of these ...