COMPANY STRUCTURE

Introductory information

Company Structure
Every

company has two organizational structures: The formal one is written on the organisational charts; the other is the everyday relationship of the men and women in the organization.

Company StructureType 1

Hierarchical/ Pyramidal Structure: a system in which people are organized into different levels of importance from highest to lowest

Superiors/ Subordinates
Superior:

a person who is higher in rank, importance or position. a person who has a position with less authority or power than somebody else

Subordinate:

Functional Structure
A

structure in an organization, in which people are grouped together into functional or specific departments, each department has its own function (such as: purchasing, accounts, production, sales, marketing) and has a head (Manager or Director)

Matrix Structure
a

type of organisational structure in which people with similar skills are pooled for work assignments. For example, all engineers maybe in one engineering department and report to an engineering manager, The same engineers may be assigned to different projects and report to a project manager while working on that project

Forms of Business Ownership

Sole

Proprietorship Partnerships Joint venture Companies Charities Franchises

Sole Proprietorship (I)

Individual persons own the firms, its assets and profits generated by the business. They are responsible for day-to-day administration, liabilities and debts. The sole proprietors are in complete control and the business can be easily dissolved, if they so desire. The sole proprietors have unlimited liability and are legally responsible for all debts against their business.

Sole Proprietorship (II)

A

sole trader exists where a single person owns a business. Most sole traders work on their own . Initial capital savings or borrowed. Very common in retailing, service trades.

Partnerships

Two or more persons share the ownership of a single business. The partners sign a partnership deed which is a legal document covering areas such as expansion of partnership, sharing of profits, decision making, resolution of disputes, dissolution of partnership when needed, up front decision regarding time and money each partner will contribute etc. Since the partners are jointly and individually liable for the actions of the other partners, sharing of profits, there is always the possibility of disagreement

Joint venture
A

limited partnership for a limited period or a single project

Companies
A

company is defined as an association of persons that contributes money (or equivalent value in goods and assets) to a common stock. The stock is employed in some trade or business, and the profit /loss arising out of that business is shared. There are two types of company: public companies and private companies

CHARITIES
Charities

are organisations with very specialised aims. They exist to raise money for good causes and draw attention to the needs of disadvantaged groups in society. They also rise awareness E.g. British/Romanian Red Cross

FRANCHISES
A

franchise is not a form of business organisation as such, but a way of managing and growing a business