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Types of Organization (For-profit commercial organization (Public-private…
Types of Organization
For-profit commercial organization
Microfinance providers
A type of banking service that provide external finance to the unemployed or low-income earners
Charge interest on loans
Cooperatives
Owned and run by their members
All shareholders are expected to help to run the cooperative
All members have equal voting rights
Public-private partnerships (PPP)
Government organization combine with at least one private company
Used for wide range of projects that benefit local communities
Suitable for a public project due to finance issue
Completed projects are maintained by the private sector contractor on a medium to long-term (up to 30 years)
Difference between public and primary sector
Public
provide goods and services deemed to be essentials and of benefit of the citizens
Controlled by regional or national government
Private
commercial sector of the economy, owned and run by private individuals and organization that typically strive for a profit
For-profit commercial organization
Sole traders
Owns by one person
Unlimited liability
All risk is taken by their own
Companies/corporation
Commercial business with limited liability owned by their shareholders
Profits must be shared among shareholders
Limited liability protects shareholders, they cannot lose more money than they invested to the company
Owners need 2 documents
The Memorandum of Association
The Articles of Association
Non-profit social enterprise
Charity
Operate in an altruistic way with the objective of promoting a worthwhile cause
Predominantly operate in the private sector
Run for the benefits of others
Get their finance by a limited range of sources (donations, fund raising events and selling goods)
Operate to promote and raise money for social cause
Non Government Organization (NGO)
Neither part of the government or a traditional for-profit business but run by voluntary groups
May be funded by governments, international organization, charities, commercial business or private individuals
Can be local, national or international level
Run to promote social cause
Exert pressure and influence on government policies to support their cause