Handout - Size and Nature of Businesses

Subject: Topic: Office Administration Office Orientation Sub Topic: The size and nature of a business Duration: 3 hours – 6 sessions Grade: 10 N Date: October 2 – 6, 2023 Objectives: At the end of the lesson, the student will be able to 1.1 Identify the sizes and nature of businesses 1.2 Describe the different sizes and nature of businesses Introduction/Activity Teacher will group students in threes and issue a speech bubble to each group depicting a size of business as outlined in the syllabus and ask each group to identify the type of business organization. I own a restaurant I am big and have many offices. Sian , Alex and I have the same skill so we are in business. The Size and Nature of a Business The Office structure and activity may be organized according to the size and nature of the business. The size and nature of a business includes: Small business Medium-sized business Large business - sole trader - Partnership - Companies The size and nature of business includes business organizations or structures such as sole proprietorship, partnership, companies, cooperatives, the public sector, the private sector. Type of Business Sole proprietor Ownership Main characteristics/features One owner Partnership 2 to 20 persons Companies (Private and Public Limited) Shareholders Owned, financed and operated by one person. There may be employees but they are few. The partners utilize their skills, run the business and share the profits Private limited Companies Owned, financed and controlled by 1 to 50 persons. Shares are not sold to the general public. Cooperative Members Private Sector Private individuals or groups Public Sector Government Public Limited Companies Owned, financed and controlled by at least two shareholders. There is no maximum number of shareholders. Anyone from the public may buy shares. Each shareholder has an equal vote regardless of the number of shares held. Day-to-day operations are directed by a Board of Directors elected by the shareholders. Owned and controlled by private enterprises, which are all businesses that are not controlled or owned by government. Owned and controlled by the local or national government. The small business (Sole proprietorship or sole trader) A small business will most likely be run by a sole trader or proprietor who owns the business. The following are features of a small business:      All decisions are made by the owner The owner enjoys all the profit The owner suffers all the loss The owner invests all his money in the business and has total control over the operations The owner will higher few office workers to assist in clerical tasks Examples of small businesses are, grocery shop, auto shop, hairdressing salon, etc. Organization chart for a sole trader/proprietor Proprietor Cashier Receptionist The medium sized business (Partnership) The medium sized business may be a partnership which is owned by two to twenty persons. The features of a medium sized business are:    Partners share overall responsibility They share management duties and profit in proportion to their individual share or investment in the business This type of business employs office workers with specialized skills Examples of medium sized businesses are lawyers, accountants, architects, medical doctors, etc. Organization chart for a partnership Partnership Senior Accountant Accountant Accountant Junior Accountant Human Accounts The large business (companies) Receptionist Clerical Large businesses are considered companies and by law to be a legal. The features of large businesses are:     They are structured with a Managing Directors, a Board of Directors and departments that perform various business structures They have a high degree of specialization, meaning different departments They higher many people Jobs are more specialized Examples of companies are utility companies, financial institutions, hotels, etc.