Contents

1. Business Organization:........................................................................................................................3

1.1 Definition:....................................................................................................................................3

1.2 Example:......................................................................................................................................3

2. Types of Organization (On Basis Ownership Structure)......................................................................3

2.1 Sole Trader..................................................................................................................................3

2.2 Definition.....................................................................................................................................4

2.3 Purposes:......................................................................................................................................4

2.4 Advantages:.................................................................................................................................4

2.5 Disadvantages:.............................................................................................................................4

3. Partnership Organisation.....................................................................................................................5

3.1 Definition:....................................................................................................................................5

3.2 Purposes:......................................................................................................................................5

3.3 Partnership Deeds........................................................................................................................5

3.4 Advantages..................................................................................................................................5

1.1 Disadvantages..............................................................................................................................6

4. Companies...........................................................................................................................................6

4.1 Definition:....................................................................................................................................6

4.2 Purposes:......................................................................................................................................6

4.3 Advantages:.................................................................................................................................7

4.4 Disadvantages:.............................................................................................................................7

4.5 Real Life Examples:....................................................................................................................7

5. Conglomerate Organization.................................................................................................................7

5.1 Definition:....................................................................................................................................7

5.2 Purposes:......................................................................................................................................7

5.3 Real Life Examples:....................................................................................................................8

6. LLPs (Limited Liability Partnership)...................................................................................................8

6.1 Definition.....................................................................................................................................8

6.2 Purposes.......................................................................................................................................8

6.3 Advantages..................................................................................................................................8

6.4 Disadvantages..............................................................................................................................8

6.5 Real-life examples.......................................................................................................................9

 BUSINESS ORGANISATION AND ITS TYPES

1. Business Organization:

1.1 Definition:

1.2 Example:

2. Types of Organization (On Basis Ownership Structure)

2.1 Sole Trader

2.2 Definition

2.3 Purposes:

 Profit Maximization
 Breakeven
 Survival
 Supply Goods and Services
 No Sharing of Profit
 No Dilution of Power –BYOB – Full Control
 Less Legal Requirement
 More Sale
 Costumer Services
 Number of Customers
 Easy to Establish
 No Corporate Tax

2.4 Advantages:
 Profit Retention
 Control
 No corporate tax payments
 Minimum legal cost of formation
2.5 Disadvantages:
 Unlimited liability
 Limited investment
 Limited knowledge and skills

3. Partnership Organisation

3.1 Definition:

3.2 Purposes:
 Profit Maximization
 Breakeven
 Survival
 Growth
 Market Share
 Supply Goods and Services
 Easy to Establish than a Company
 No Corporate Tax
 Divide the Maximum Amount of Risk
 To Get Larger Amount of Knowledge & Skills
 Registration
 Customer services
 More Sales

3.3 Partnership Deeds

3.4 Advantages

 Wider pool of knowledge and skills

 More capital than sole proprietorship
 Easy to establish

1.1 Disadvantages
 Conflicts between partners
 Small organizational setup
 Unlimited liability

4. Companies

4.1 Definition:

4.2 Purposes:
 Customer services
 More Sales
 Growth
 Market Share
 Supply Goods and Services
 Profit Maximization
  Breakeven
 Survival
 Number of Products
 Value Addition
 Recognition
 Privileges
 Credibility
 Gain Huge Capital
 Limited Liabilities
 Separate legal Entity

4.3 Advantages:
 Limited liability
 Huge investment (more capital)
 Separate legal entity
 Ownership and control

4.4 Disadvantages:

 High setup cost

 Double/Triple taxation
 Dilution of powers
4.5 Real Life Examples:

5. Conglomerate Organization

5.1 Definition:

5.2 Purposes:
 Legal recognition
 Better supply
 Growth
 Diversification
 Low risk
 Privileges
 Brand name

5.3 Real Life Examples:

6. LLPs (Limited Liability Partnership)

6.1 Definition

6.2 Purposes
 Customer services
 More Sales
 Growth
  Market Share
 Supply Goods and Services
 Profit Maximization
 Breakeven
 Survival
 Number of Products
 Value Addition
 Recognition
 Privileges
 Credibility
 Gain Huge Capital
 Limited Liabilities
 Separate legal Entity

6.3 Advantages
 Limited liability
 Huge investment (more capital)
 separate legal entity

6.4 Disadvantages
 High setup cost
 Double/Triple taxation
 More documentation

6.5 Real-life examples

DIFFERENCE BETWEEN SINGLE MEMBER COMPANY [SMC]

& A SOLE TRADER
Differences Single Member Company [SMC] Sole Trader
(Private limited)
Registration The registration in SMC is compulsory.
Law There is a law for SMC – Companies Act
2017
Regulator The regulator of SMC is SECP [Security and
Commission Exchange]
Liability
Taxation
Name