What is a business organization?

Business organization, an entity formed for the purpose of carrying on commercial enterprise. Such an organization is predicated on systems of law governing contract and exchange, property rights, and incorporation. Most businesses are limited-liability companies. Learn more about business principles of operation.

What type of organizational structure does a small business use?

Most small-to-medium-sized businesses implement a functional structure. Dividing the firm into departments consisting of marketing, sales, and operations uses a bureaucratic organizational structure. This type is common among large companies with many business units.

What are the different types of organizational structures?

As discussed below, functional, product-based, market-based and geographical organizational structures are vertical structures. With a flat organization structure, a person may report to more than one person and there may be cross-department responsibilities and decision-making authority.