There are different types of businesses. Some of them are Sole Traders, Partnership businesses and Limited companies.
Sole Traders are the types of organization which is run by a sole owner. There is one person in charge. The sole trader takes the decision of expanding the business, how to operate and what kind of service to provide. The benefits of sole traders is that the owner gets all the profit and have total control on how to run the business. The disadvantages are that they have unlimited liability as there is no distinction between the owner and the liabilities, they bear the risk of all losses of a business as well as if they are unwell, they have no one to depend on to run the business. …show more content…
A big business will handle responsibility through delegation from the owners/board of directors. The responsibilities are usually given in form of departments. There are types of departments such as Human Resources Department, Finance Department, Sales and Marketing Department, Operations Department etc.
Human Resources Department
Human Resources Department deals with recruitment of human workers with possession of skills that is needed by the organization. This is normally done through interviews and if the interviewer believes an individual would be useful they are recruited and the worker is discussed of their payment/wage rates, the benefits they will receive from their company as well as their holidays booking and training the workers further.
Finance department deals with the finance in the business as well as money flowing in and out of the organization. They prepare balance sheet, profit and loss account as well as trading account annually which states the financial transactions and financial position of the business. This helps the business make decisions for the future to manage their cash properly. They also pay the wages of employees correctly as well as how much they should be getting paid and when they are supposed to get …show more content…
As we can see below, the owner or Board of Directors are in charge of organization and they make a decision to make a new product. The decision then goes down the hierarchy. The operations departments has the responsibility of creating a product that the business wishes to sell. The sales and marketing department decide how to attract the customers to buy it. The finance department decides how much cost budget to give to the new product and finally the Human Resources department recruits people to work on the day-to-day activities and trains them the skills relating to the product to help the customers. An example of departments interlinked with each other is Tesco. Tesco is mainly associated with providing service to the customers. They have departments such as Finance, Customer Service, Human Resources, Research and Development and IT. The research and development department researches on providing new products to the customers, finance department provides the finances to the R&D department as well as to the human resources department to pay the workers. When a product is introduced to the market, the customer service team is responsible to provide the products to the customers and keeping a healthy relationship with them and finally the IT team provides their service in case a computerized device breaks