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TYPES OF ORGANISATION (Distinction between sectors (Public Sector…
TYPES OF ORGANISATION
Distinction between sectors
Public Sector
accountable and controlled by local
Private Sector
owned bussiness and controlled by individuals/groups
Mixed Economy
economic resources are owned and controlled by both
Free-market Economy
economic resources are owned largely by the private with very little state intervention
Privatisation
the sale of public sector to private
Command Economy
economic resources are owned, planned and controlled by the state
Public-private partnership
involvement of the private sector , in the form of management expertise or financial investment, in public sector aiming to benefit public
government-funded
Private sector-funded
Gorvernment-directed but with private sector finance and management
Profit-Based Organisations
Sole Traders
one person provides the permanent finance
have full control of the business
able to keep all the profits
have unlimited liability
Partnership
two or more people carry business together with shared capital investment and responsibility
unlimited liabilities to all partners
Limited Company
Limited liability
the only potential loss not the total wealth
Legal personality
recognised as having an identity seperated from its owner
Continuity
no break in ownership even the owner is dies
Private limited company
owned by shareholders who are the same family
cannot sell shares to general public
Public limited company
legal right to sell share to public
share price is quoted on the national stock exchange
For-profit Social Enterprise
Social Enterprise
reinvests mosts of its profits into benefiting society
triple bottom line
economic
social
environmental
directly produce goods or provide services
have social aims and use ethical ways
need to make a surplus or profit
Cooperatives
meet the common needs and aspirations of its member
Retail
owned by customers for mutual benefits
agricultural
farmers pools resources for mutual benefits
worker
manufacturing
Microfinance instituition
provision of very small loan by specialist finance
Non-profit social enterprises
aims other than making profits
Charities
Non-governmental organisation (NGO)