1.3 Types of businesses Business organisations and their structure Business organisations differ in type, size and structure. How to classify business organisations It is possible to categorise them by considering: who owns the business; what type of it adopts; liability who manages it; how it is financed; who shares the profits. Types of business organisations On the basis of the above criteria, business organisations can be: sole traders; limited or unlimited partnerships; private or public limited companies; cooperatives. Businesses are said to be: , when the business is seen as a collection of people who respond personally; unincorporated , when they have a separate legal entity. incorporated Internal structure of business organisations Every business organisation needs a clear internal organisational structure so that all workers know exactly their own and everyone else’s roles and responsibilities in the company. This structure may vary from one company to another, but very often it is and represented through an which defines: who is in what, who is in charge of whom, and who is responsible for making and carrying out decisions. hierarchical organisational chart charge of Main departments of business organisations To work in the best possible way, each company usually organises its workers into . Depending on a company’s dimensions and line of business, these departments can be more or less specific, and include more or less sub-sections. departments The main departments are: Administration/General management Production Purchasing or Procurement Operations Human resources Finance and accounting Sales Marketing Other possible departments are: Logistics, Customer service support, Research and development, Information Technology support, Health and safety, Maintenance, Advertising, Quality, and Communication.