Types of Business Organizations ; (1) Sole Trader, owned and controlled by one person.

So easy to set up, gets all of the profit, can control everything, gets feedback quickly, employ
other people in the business. While, the disadvantages are may lack capital, unlimited
liability, and full responbility. (2) Partnership, owns more than one person usually two to a
maximum 20 people, need agreement on finance and how they will run the business.
Partnership consist of General partner, limited partner, and sleeping partner. The advantages
are easy to set up, more capital than sole trader, bring more ideas and skills, and share
responbility. While, the disadvantages are partners can disagree, profit is shared, and
unlimited liability. (3) Private Limited Company, has one or more shareholders, more
finance and more ideas, limited liability, disclose financial information, and cannot sell
shares publicly. (4) Public Limited Company, It has at least two shareholders, can sell
shares to any individual or organizations on the stock market through stock exchange, has
limited liability, expensive to form, required by law for a public limited company to publish
details and all reports and accounts. (5) Multinational, operations in more than one country.
The advantages are reach consumers globally, minimaze transport cost, minimaze wages cost,
provide jobs, reduce average cost, bring knowledge and skills to a country, pay tax to the
country. There are disadvantages towards to the country as well like multinationals avoiding
paying taxes or forcing local competition out of your business or exploit the environment in a
country. The disadvantages of a multinational to the host country that they can switch profit
to other country to avoid paying tax exploit workers in low-wage economics also at harms to
environment. (6) Cooperatives, owned and controlled by a group of people to undertake an
economic activity to their mutual benefit. There are two main types of cooperatives, workers
and consumers. There are also other types like housing cooperatives, building cooperatives,
utility cooperatives, farming cooperatives and credit unions but they are all less common. An
advantages of worker cooperative are have an equal say and they also get equal profit, but
lack of business knowledge making them unable to run their business. (7) Public Sector,
controlled by goverment, some key features are run by board of directors selected from the
goverment and they have limited liability, finance is raised by taxes and reinvested profits,
finance to subsidize merit goods. There are four types of public sector organizations central
goverment authorities, local government authorities, government agencies and public
corporation.
All companies are slightly different but organizational structure will making power
flows from the top to the buttom with a greater concentration at the top.