Please enable JavaScript.
Coggle requires JavaScript to display documents.
Structure of Organisations - Coggle Diagram
Structure of Organisations
Non-Incorporated Organisations
Sole Proprietors
Simplest form of a business
No legal requirements to create
Other than tax, no need to keep record
Cost nothing to create
Unlimited Liability
100% profits accessible
One owner
Partnership
Similar to sole trader, except 2-20 partnership
All partners set up a legal agreement
Greater capital than a Sole Proprietors
Unlimited Liability
All profits equally divided
If one partner leaves, partnership is dissolved
All partners are equal, unless they all agree to elevate one to senior partner
An entity that does not exists as a separate legal entity identity from the owner
Incorporate Organisations
Public
anyone can purchase shares through stock exchange
often a consequence of growth
can change from private to public, this change is referred to as an organisation.
Private
Not available to the public
shares owned by private individuals
Recognised as their own legal entity
Limited liability
Not-For-Profit
Organisation that does not earn profit for its owners
Requires Revenue
Two Types
Government Organisations
Funded through tax payer revenue
Supply goods/services that cannot be supplied by the private sector
Benefit the community, offering goods that are through the private sector
Charities
Operate on a lower cost base than for-profit enterprises
Provide a product/service for a target group
Tax exempt
External Environment
General External Environment
Global
Economic
Political/Legal
Sociocultural
Demographic
Technological
Specific External Environment
Customers
Public Pressure Groups
Competitors
Suppliers
Stakeholders
Shareholders
Employees
Customers
Suppliers
Unions
Competitors
Regulation Authorities
Money Lenders