Please enable JavaScript.
Coggle requires JavaScript to display documents.
1.2: Types of Organisations (Sectors (public (provide essential goods &…
1.2:
Types of Organisations
Sectors
public
organisations controlled by local government
command economy
: controlled by state
provide essential goods & services
health & education systems; defence & law, police force
public corporations
: business controlled by state
private
businesses controlled by individuals
free-market economy
: little state intervention
mixed economy
: economic resources are controlled by private and public sectors
privatisation
: selling of public sector to private sector
For-profit organisations
profit-based private businesses
Sole traders
single owner
keeps all the profits
unlimited responsability
can turn into another form of organisation
dependant on own savings
common in: construction; retailing; hairdressing; car service; catering
Partnerships
a grouping of individuals
overcome setbacks of sole trading
"Deed of Partnership"
common in: law & accountancy
Limited companies
private limited
small to medium size
owned by shareholders (often family)
can´t sell shares to general public
"Ltd"
or
"Pte"
public limited
large business
legal right to sell shares to general public
price on national stock exchange
"plc"
or
"Inc"
stock market flotation (process of turning private into public)
quickly sell shares
limited liability
#
divided into
shares
(certificate confirms part ownership)
shareholders
: part-owners; buy shares
the only loss a shareholder has is the amount invested
legal personality
company has identity separate of its owners
continuity
death of owner doesn´t lead to dissolution
inheritance of shares
For-profit social enterprises
Social enterprices
mainly social objectives
reinvests profits to benefit society
can keep some profit to self
directly produce good or provide service
ethical
cannot rely on donations
triple bottom line
: economic, social & environmental objectives
Cooperatives
group of people
meet the common needs to members
make decisions democratically
create value for customer
retail cooperative
: consumers´cooperative; owned by consumers; private sector enterprise
agricultural cooperative
: farmers pool (mancomunar) resources
worker cooperative
: manufacturing; workers collectively own business & make decisions
Microfinance institutions
very small loans
clients must have capacity to pay back
Public-private partnership (PPP)
Government funded
government provides funding
organisation is managed by private business
uses private sector techniques
private sector in form of management expertise/financial investment
Private sector-funded
state-managed schemes
large sums of capital investment
government pays rent to private sector business
private finance initiative
(PFI)
Government-directed / Private sector finance & management
encourages both private sector funding & management
private sector hospital; leashed to health authority
Non-profit social enterprises
governed by voluntary board
Non-governmental organisations (NGOs)
independent from government
local, national or international level
support public good
social, environmental & humanitarian objectives
Charities
usually allowed tax benefits
social & environmental functions
dependent on private contributions
Cecilia Martínez A01197738