MODULE TITLE:  BUSINESS MANAGEMENT TECHNIQUES

TOPIC TITLE:  BUSINESS ORGANISATION AND STRATEGIES

LESSON 1:  THE BUSINESS UNIT

INTRODUCTION - In this lesson we examine the business unit starting with the sole trader and progressing through to large-scale enterprises in the form of public companies. Businesses expand through the investment of capital from savings and from outside sources though their ability to do this is dependent upon their own structure.

YOUR AIMS - At the end of this lesson you should be able to:

• classify businesses by their method of organisation
• understand the organisational restraints to growth
• critically appraise each type of business unit
• appreciate how business growth is linked to its system of organisation.

QUESTIONS

1. What are the disadvantages for the sole trader?

2. Why are so many businesses run by sole traders if the described disadvantages exist?

3. Why is the partnership a suitable form of organisation for a firm of solicitors?

4. What is the main difference between a private and a public limited company?

5. Why are there so many more private companies in Britain than there are public companies?