Business Organisation

Business Organisation is an entity formed for the purpose of carrying on commercial enterprise that describes how businesses are structured and how to produce goods or services and meet needs of the customers. The Business Organisation aims to focus on either generating profit (for profit organisation) or improving society (not for profit). There are 3 main types of business organisation: Individual Proprietorships (owned and run by one person), Partnership (owned and run by two or more individuals - general or limited), Corporation or Limited Liability Company (LLC) (owners’ liability is distributed to the shareholders as dividends).

Company is a voluntary association formed and organised for the commercial business that sells goods or service in order to make profit. In general, the Company is owned by the members whereas a corporation is owned by shareholders.

Corporation is a company or group of companies to be controlled as a single organisation or entity which is carrying out business activities. The Corporation is recognised by law and a legal existence to have an authority of the business as a single business organisation (legally a person) that is owned by the shareholders (or stockholders) who share in profits and losses generated through the business operation. The Corporation has a limited liability separated by individuals who involved as shared dividends.

Enterprise is an organisation for a business or company who is carrying out business activities for the profit generations. The Enterprise manages and controls all necessary functions to provide goods and services involving directly or indirectly industrial financial and commercial aspects. Enterprise types are: Individual Proprietorships (owned and run by one person); Partnership (owned and run by two or more individuals - general or limited); Corporation or Limited Liability Company (LLC) (owners’ liability is distributed to the shareholders as dividends); Professional Company/Professional Limited Liability Company (PC/PLLC) as well as a non-profit institution, or an unincorporated enterprise.

Organisation (Organization) is a team or group of people who works together for the shared purpose of administering and managing business, social, political, and other activities, such as a government department, business, or project. The Organisation Structure is a framework to define the roles and responsibilities, work flow, reporting system, and decision making. There are two types of an organisation: a permanent and task force organisation.

Affiliated Enterprise is an enterprise related through direct investment ownership structure that is partly owned by another, less than the majority interest in another company. In general, the Affiliated Enterprise is less than 50% owned by a parent company. The ownership of Affiliated Enterprise is structured like branches, subsidiaries, associates, and joint ventures, and it is possible for a member of two or more groups of affiliated enterprises.

Business Enterprise is the activities of providing goods and services involving financial, commercial, and industrial aspects where the primary motive is the profit generation.

Entrepreneur is a person who starts or sets up a business taking a benefit of opportunity.

Holding Company is a purely financial concerning organisation whose main function is to conduct no activity (no produce goods and services) other than owning shares in other companies, to manage other businesses and receive dividends from its subsidiaries. The Holding Company is mainly to gain control and not to operate by representation on the boards of directors of the subsidiaries that allows the ownership and controls their subsidiaries to reduce the business risk.

Incorporation (Inc.) is 1) an incorporated company or corporation that is a legal process used to form a corporate entity or company. The Incorporated Company (Inc.) is liable for its own debts and pays taxes on its earnings; 2) including something as a part.

Inter-Company means the transactions between two or more related internal legal entities, the same company.

Intra-Company means the transactions within parts of the same company or the same group, the business units of the same parent company.

Joint Venture (JV) is a new business agreement with two or more parties to do a particular business or project with the pooling resource operation. JVs are advantageous as a risk reducing mechanism in new market penetration that is similar to a partnership, but limited to a specific project in a specific area. The participant of a JV is responsible for profits and losses, and the other type of JV formation can be the JVs limited by guarantee with partners holding shares.

Limited Company (Ltd.) is an organisational form that has a limited members, responsibility and liability who may be limited by shares or guarantee, only have to ​pay ​part of the ​money they ​owe if the ​company ​fails ​financially. The Limited Company (Ltd.) structure is used mostly in European countries and Canada that may be further divided into public companies (traded on the stock exchange) and private companies (privately owned).

Limited Liability Company (LLC) is a business structure or organisation that is operated and managed by members (shareholder owners) with selective benefits of a corporation and a limited partnership (a newer type of business that is a blend between a sole proprietorship and corporation). The LLC members of the company are not personally liable for the company's debts or liabilities. LLCs may be organised as not-for-profit and a few types of businesses but, generally cannot be LLCs such as banks and insurance companies.

National Private Corporation is all resident corporations that is not controlled by government.

National Resource Company is a government owned non financial public organisation (corporation or enterprise) that is operated in the exploration, extraction, processing, or sale of a mining, gas, or oil. Nationally Resource Companies should be accountable, with well defined mandates and an objective of commercial and operational efficiency.

Not for Profit Organisation is an organisation that is not operated for the profit, personal gain, or any other benefit of particular people. The Not-for-Profit Organisation can be operated by its members and communities, the people who run the organisation. The Not-for-Profit Organisation can make profit, but any profit made must be applied for the organisation's purpose, and can retain profits as long as there is for a genuine reason and purpose.

Offshore Enterprise is a type of entities formed in a foreign country that is a principal of the organisation operated outside of its country of formation.

Parent Company is a company who owns the other company with more than 50 percent of the ordinary shares or voting power, or less than 50 percent but can manage and control the board of directors of that company with the right to appoint or remove the majority of directors of the company (subsidiary company).

Partnership is two or more people, or organisations who work together to perform a project or business that is separate legal entities which behave like corporations but whose members have limited liability. The business responsibility of the Partnership including financial and legal is depending on how the ownership (the same time both shareholders and managers) is divided.

Private Company is a business firm or company operated by a private.

Private Corporation is a corporation which is an incorporated company or business operated by a private, non public sector.

Private Limited Company (PLC) is a type of privately held small business entity whose shares are not traded on a stock market that offers limited liability, or legal protection for its shareholders, limits the number of shareholders to 50 people, and restricts shareholders from publicly trading shares. A PLC is the most popular type of UK company incorporation.

Public Company is a business or company operated by the public sector.

Public Corporation is a company or corporation operated by the public or government.

Public Enterprise is a business organisation wholly or partly owned by the government and controlled by the public authorities.

Public Private Partnership (PPP) is a cooperative arrangement between two or more public and private sectors whereby the private sector provides infrastructure assets and services such as hospitals, schools, prisons, roads, bridges, tunnels, railways, and water and sanitation plants which were normally provided by government.

Quasi-corporation is an entity that is not incorporated (unincorporated enterprise) or otherwise legally established, but which functions as if it were a corporation, and which have complete sets of accounts, including balance sheets. (e.g., Counties, School districts, and State agencies. etc.) A Quasi-public corporation is a company in the private sector that is supported by the government with a public mandate to provide a given service. (e.g., Telephone companies, oil and gas, water, and electric light companies, and irrigation companies, etc.)

Related Enterprise is a controlled by another organisation who is the direct investment relationship as ownership, 10 percent or more of the ordinary shares or voting power, or by a direct investor resident in the enterprise. The Related Enterprise is any other company, partnership, joint venture, trust, or other enterprise that may be both companies being part of the same business group or stem from family or personal ties between officials of two organisations.

Small and medium-sized Enterprises (SMEs) are over 99% of all businesses in the EU. The definition of an SME is important for access to finance and EU support programmes targeted specifically at these enterprises.

Startup (Company) is an entrepreneurial venture organisation that is a newly starting and working to make a profit. The Startup Company is typically technology oriented, or fast growing business, and has high growth potential return on investment (ROI), while the financial solution is not obvious, and success is not guaranteed. The Startup is usually a small business (Sole trader or limited company), or with partnerships (e.g., Incubators provide guidance and advice; Accelerators provides structured curriculum in a short period; Angel investors or venture capital (VC), etc.) business model.

Subsidiary is 1) a company controlled by another company (controlling company: parent company or holding company) who owns more than 50 percent of the common shares of the company (subsidiary company); 2) to something less important than something else with which it is connected.

Trust is 1) a legal entity operated by a party (trustor) through which a second party (trustee) holds the right to manage the trustor's assets or property for the benefit of a third party (beneficiary); 2) a legal term named people (trustee) hold property on behalf of other people (beneficiary); 3) to ​believe that is good and ​honest and will not ​harm, ​safe and ​reliable.

Trustee is a person or company appointed to carry out the tasks of the trust.

Unincorporated Enterprise is the method of owner's business activities that is usually a sole proprietor or partnership company which is not incorporated as a legal entity separate from the owner. The owner of Unincorporated Enterprise is personally liable, without limit, for any debts or obligations incurred during the business.

Access Economy is a business model that gives customers access to goods and services rather than having to own them. The Access Economy is focused on delivering the benefit of access over ownership, where a Sharing Economy facilitates the sharing of underused assets or services for free or for a fee directly between individuals or organisations. The Access Economy refers to renting assets or producing environmental benefits through reduced mass investment. (e.g., AirBnb, ZipCar and Uber)

Collaborative Economy is focusing on collaborative forms of consumption, production, and finance that is rapidly emerging across world who have already used, or are aware of collaborative economy services. The Collaborative Economy is generally, operation of the internet based company, and the range from sharing houses and car journeys, etc. (Also, called as the Sharing Economy)

Franchising is a special type of vertical relationship between two companies by which a franchiser grants a franchisee the right to use its trademark or tradename including certain business systems and processes, to produce and market a goods or services that is based on a marketing concept which can be adopted by an organisation as a strategy for business expansion.

Freelance Economy is to undertake specific jobs with workforce participation and income generation by freelancers as independent workers and self-employed in return for an agreed upon payment. A Freelancer is the individual who is hired for such temporary work and limited overlap with skill sharing. The Freelance Work is often longer and deeper than gigs, and the internet has created the current boom in freelance work including commercial design, hotel management and taxi driving.

Gig Economy is a labour market characterised by the prevalence of short-term contracts, temporary, or freelance work that is based on workforce participation and income generation by a single project or task for which a worker is hired without guarantee of pay, but normally paid per piece (e.g., a set rate to deliver a package or drive a fare to a location, etc.) rather than working for an employer. (Opposed of a Permanent Job)

Membership Economy is replacing the ownership economy as a subscription, and the community to build a loyalty and a long-term connection to the business that changes in technology have extended the infrastructure of trust and opportunity to join the Membership Economy. The Membership Economy is working to build long-term, formal relationships with customers in which some organisations charge a subscription fee, but others might be free. The Membership Economy focuses on the formal relationships over one-time transactions of strategic business model that can create predictable revenue and cashflow; grow with lower incremental cost through customer referral; and generate ongoing data to refine tactics and learn about customers. (Refer to the Subscription Business)

On Demand Economy is a business model focused on the on-demand provision of goods and services that is accessible to everyone immediately. On Demand Economy is the creative economic activity by technology companies that is able to provide immediate goods and services to the consumer demand. (Refer to the Gig Economy)

Peer Economy (or Peer to Peer (P2P) Economy)

Accelerator is 1) the specialised business person or organisation who helps the new companies or organisations to grow quickly and become successful. The business Accelerators play a vital role in fostering innovation and entrepreneurship by providing startups with the support and resources they need to grow rapidly and succeed in competitive markets. (Refer to the Financial Accelerator); 2) an additive to increase the rate at which a chemical reaction such as curing agent or additive, etc.; 3) the pedal in a vehicle that makes it go faster.

Association is a group of people in a single organisation who has a common purpose.

Barrier to Entry (or Economic Barrier to Entry) is the factor which prevent or deter the entry of new firms that can be a fixed cost and must be incurred by a new entrant into a market, regardless of production or sales activities, or earning excess profits.

Big Tech refers to the most dominant and largest technology companies in their respective sectors. The Big Tech organisations are: GAFA (Google, Apple, Facebook, Amazon), GAFAM (includes Microsoft), NATU (Netflix, Airbnb, Tesla and Uber), who are the most recent disruptive organisations; In China, BATX (Baidu, Alibaba, Tencent and Xiomi). Their products and services are used globally and have become heavily relied upon by businesses and individuals alike, bringing up privacy, safety and antitrust concerns about their influence and operations, and concerns over monopolistic practices have led to antitrust investigations in the USA and the EU Commission.

Blue Chip company or investment is a reliable investment that is the national reputation for quality, reliability, and ability to operate profitably in goods and services. The name Blue Chip came about from the game of poker in which the blue chips have the highest value that has been a widely followed indicator of the stock market since October 1, 1928.

Brand Competition is the competition between the companies offering the similar products or services in the same target market in which the companies promote and develop differentiated products and services frequently based on brands or labels. (e.g., Coca Cola vs. Pepsi-Cola) (Refer to the Inter-Brand Competition; Intra-Brand Competition)

Business is the ​activities of ​buying and/or ​selling ​goods and ​services that can be privately owned or government owned. The Business is an organisation or economic system where goods and services are exchanged for one another or for money.

Business to Business (B2B)

Non-Governmental Organization (NGO) is any non-profit, voluntary citizens' group which is organized on a local, national or international level. Task-oriented and driven by people with a common interest, NGOs perform a variety of service and humanitarian functions, bring citizen concerns to Governments, advocate and monitor policies and encourage political participation through provision of information. Some are organized around specific issues, such as human rights, environment or health. They provide analysis and expertise, serve as early warning mechanisms and help monitor and implement international agreements. Their relationship with offices and agencies of the United Nations system differs depending on their goals, their venue and the mandate of a particular institution. (Source: http://www.ngo.org)