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1.2 TYPES OF ORGANISATION (For-profit social enterprises (social…
1.2 TYPES OF ORGANISATION
PUBLIC SECTOR ENTERPRISE
For-profit organisation
sole trader
a person have full control of the business
advantages
: easy to set up, owner have complete control,keeps all the profit, able to choose time and patterns of working, can based on interest or skills
disadvantages
: unlimited liability, faces intense copetition from bigger firm,difficult to raise additional capital,lack of continuity
partnership
formed by two or more people to carry on a business
advantages
: different specialise of business area,shared decision making,additional capital injected by each partner, business losses shared, greater privacy and fewer legal formalities
disadvantages
: profit are shared, unlimited liability,bound by the decisin, not possible to raise capital from selling shares
limited company
Private
small to mediuem-sized business that own by shareholder
advantages
: limited shareholder,separate legl personality, able to raise capital,greater status than unincorporated business
disadvantages
: legal formalities involved,hard to sell share,end-of-year accounts must be sent to Companies House
Public
large company, with the legal right to sell shares
advantages
: limited liability, separate legal identity, contiinuity,easy to buying and selling sharesaccess to substantial capital sources
disadvantages
: legal formalities in formation, share prices subject to fluctuatuion,risk of takeover due to avaibilityof the shares
For-profit social enterprises
social enterprises
: mainly social objectives that reinvensts most of its profit inti benefiting society
cooperatives
: a group of people acting together to meet the common needs and aspiration of its member
microfinance institutions:
the provision of very small loans by specialist finance busness
PUBLIC-PRIVATE PARTNERSHIP
involve private sectors in the form of management expertise and finacial investment
costs
: PFI schemes have been critised for earinig private sector businesses-must be paid for by taxpayer, lack of experience needed
benefits
: common costructed building ike school and roads must involve private sector,goverment can claim the public services are being improved, without an increase in taxes
NON-PROFIT SOCIAL ENTERPRISES
organisations which have aims other than making and distributing profit
Non-governmental organisation: a legally constituted body woth no participation of any government which have specific aim
Charities: organisation set up to raise money to help people in need