Business Environment Individual Assignment
Main body 4
1. The types of business 4
1.1 The sole trader 4
1.2 The partnership 4
1.3 The corporations 5
2. The responsibility of business 5
2.1 Social responsibilities 5
2.2 Environmental responsibilities 6
2.3 Ethics and business 6
2.4 Management responsibilities 7
2.5 Public relations and corporate image 8
3. The mission of business 9
3.1 Definition 9
3.2 Functions 9
3.3 Problems with mission 9
4. Conduct a case study to analyze the organization of a business. 9
4.1 Background of organization 10
4.2 The framework of ...view middle of the document...
Finally, the specific methods will be discussed for protecting stakeholders who involve shareholders, employees, consumers, suppliers, and the government.
1. The types of business
In general, the types of business can been divided three forms: sole trader, partnership, and corporations.
1. The sole trader
The sole trader is the simplest business form under which one can operate a business. The sole trader is not a legal entity. It simply refers to a natural person who owns the business and is personally responsible for its debts. The sole trader is a popular business form due to its simplicity, ease of setup, and nominal cost. A distinct disadvantage, however, is that the owner of a sole trader remains personally liable for all the business's debts. So, if a sole proprietor business runs into financial trouble, creditors can bring lawsuits against the business owner. If such suits are successful, the owner will have to pay the business debts with his or her own money. A sole trader can operate under the name of its owner or it can do business under a factious name, such as Nancy’s Nail Salon.
2. The partnership
A partnership is a business form created automatically when two or more persons engage in a business enterprise for profit. A partnership--in its various forms--offers its multiple owners flexibility and relative simplicity of organization and operation. In limited partnerships and limited liability partnerships, a partnership can even offer a degree of liability protection. Partnerships can be formed with a handshake--and often they are. Responsible partners, however, will seek to have their partnership arrangement memorialized in a partnership agreement, preferably with the assistance of an attorney. Because partnerships can be formed so easily, partnerships are often formed accidentally through oral agreements. Such as FC Barcelona.
3. The corporations
A corporation is a body--it is a legal person in the eyes of the law. It can bring lawsuits, can buy and sell property, contract, be taxed, and even commit crimes.
Its most notable feature: a corporation protects its owners from personal liability for corporate debts and obligations--within limits. A corporation has perpetual life. When shareholders pass on or leave a corporation, they can transfer their shares to others who can continue a corporation's business. A corporation is owned by its shareholders, managed by its board of directors, and in most cases operated by its officers. The shareholders elect the directors, who in turn appoint the corporate officers. In small corporations, the same person may serve multiple roles--shareholder, director, and officer. Such as Volkswagen Group.
2. The responsibility of business
In business environment, the responsibilities of business are divided into five types, which include social responsibilities, environmental responsibilities, ethics and business, management...