Organisational Purposes of Business

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Contents Introduction I.Organizational purposes of business 1.Purposes of different types of organization 2.Objectives of different stakeholders 3.Responsibilities of an organization II.National environment that businesses operate 1.How economic systems allocate resources effectively 2.Impact of fiscal and monetary policy 3.Impact of competition policy and regulatory mechanisms Introduction This report would analyze the organizational purposes of businesses including types of organization, objectives, responsibilities, and strategies. What is more, the character of national environment that businesses conduct in is also discussed. Vietnam posts and telecommunication group (VNPT) and Vodafone group plc are two investigated companies of this report, would be analyzed in detail.

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  1. Organizational purposes of business
  1. Purposes of different types of organization
  • Categories of organization
  • Legal form
  • Sole trader: Sole traders are persons who conduct their own business. Most of sole traders have small business. They earn the whole profits of their business; however, they suffer all losses from their business. With sole traders, there is no difference between their business tasks and personal one. They are responsible for paying all business debts. Once the debt exceeds their business earnings, sole traders must use their non-business possession to pay for that.
  • Partnership: If more than two individual join for business purposes, partnership forms. Normally, partnership forms with the aim of increasing investments or incorporating skills.
  • Company or corporation: Companies or corporations are organizations that do business tasks and are responsible for their legal issues. Therefore, every debt or liability is not shareholders’ responsibility but the company’s. According to Companies Acts, there are two kinds of company: Public limited company and Private limited Company.
  1. Public limited company (Plc): Public limited company is officially traded on a stock market.
  2. Private limited company (Ltd): In private limited company, shareholders could only transfer shares through direct purchase.
  • Franchises: An individual could buy a license from the franchisor to have the right to produce and trade products under a famous brand in a particular location.

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