1. BUSINESS
ORGANIZATIONS
By Olaobaju
Abraham

2. TOPICS TO BE COVERED
Meaning of a business organization.
Types of business organization.
Effects of changes in structure of business organizations.
Advantages and disadvantages of the different business
organizations.
Differences between nationalization and privatization.

3. BUSINESS ORGANIZATION.
The best way to derive the meaning of the term "business
organization" is to focus on each word separately.
. -BUSINESS : All businesses have commercial objectives. For-
profit businesses sell products or services to generate revenue
and earnings
-ORGANIZATION: which involves businesses and other groups of
people not organized for commercial purposes.

4. SO FAR..
We can say a business organization is an individual or group
of people that collaborate to achieve certain commercial goals.
This is an example of
business
organization.

5. TYPES OF BUSINESS
ORGANIZATION.
 Sole proprietorship : is a business organization owned and controlled
by one person who takes full responsibility of any positive or negative effects that
may occur.
although they may employ workers. Individuals who provide a specialist service like
plumbers, hairdressers or photographers are often sole traders.
Therefore these sort of businesses have advantages and dis -advantages.
which would be treated in the next
page

6. SOLE TRADER

7. SOLE TRADER
DISADVANTAGES
Basically to start up a business is no big deal all you need is any
amount of cash to get on with it , but in the likeness of it most sole
traders lack that kind of capital.
Also sole traders are likely to get bankrupt due to the liabilities they
seem to attract . These pieces of metal are people or banks that
the owner owes.

8. TYPES OF BUSINESS
ORGANIZATION
A Partnership : is a legal agreement between two or several people,
usually no more than 20 to own , finance and run a business jointly. , and
share any profit.
There are three types of partners
 The general partners who share unlimited liability.
 The limited partners with limited liability.
 The sleeping partners who just provide the money to the partnership
just to share the profit in return.

9. PARTNERSHIP
ADVANTAGES
The most important thing about partnership is that new ideas and
important business invention can be jotted down to improve business
stability.
Also as more partners join , the business expands and as the
business expands partners invest new capital into the production of
good and services.

10. PARTNERSHIP
DISADVANTAGES
Some times a partnership can be a little rough especially when
there is a need to decide on a produce or nailing a business deal.
These sort of arguments can slow down the rate at which the
organization competes. The followings are lost in this process
 Time the lack of capital.
 Disagreements.

11. LIMITED COMPANIES
A limited company has special status in the eyes of the law. These
types of company are incorporated, which means they have their own
legal identity and can sue or own assets in their own right.
The ownership of a limited company is divided up into equal
parts called shares. Whoever owns one or more of these is called a
shareholder.

12. LIMITED COMPANIES
Because limited companies have their own legal identity, their owners
are not personally liable for the firm's debts. The shareholders have
limited liability, which is the major advantage of this type of business
legal structure.
There are two main types of limited company:
A private limited company (ltd)
A public limited company (plc.)

13. TYPES OF LIMITED
COMPANY:
 A private limited company (ltd) is often a small business such as an
independent retailer in a market town. Shares do not trade on the
stock exchange.
 A public limited company (plc.) is usually a large, well-known
business. This could be a manufacturer or a chain of retailers with
branches in most city centers. Shares trade on the stock exchange.