1.2 Types of Organisations
Sectors: Soletrader:
• Public sector • a type of business organisation run by a single
• all organisations that are owned by the central individual
government or local government, or their agencies. • the sole trader is bound by unlimited liability so is
• Public sector organisations are dedicated to personally liable for all debts of the business
providing services to the public rather than earning a • advantages: easy to set up, owner has entire control,
profit owner keeps all of the profits, financial performance
• Private Sector remains confidential
• all organisations that are owned by individuals or • disadvantages: unlimited liability, no help with decision
groups of individual making, owner assumes all losses, limited access to
• they usually have the goal of earning profits in order financing, no continuity if owner dies
to compensate their owners for the investment they
have made into the organisation
Partnership:
Corporation: • two or more individuals who are each personally
responsible for the debts of the business they own due
• a business owned by numerous shareholders who are to unlimited liability
solely liable for their investment into the business due • usually established under a deed of partnership
to limited liability • advantages: financial performance remains
• advantages: limited liability, independent legal confidential, partners share management responsibility,
identity, can raise large amounts of funds by issuing increased expertise of partners, partners may contribute
shares and continuity even if an owner dies financing
• disadvantages: expensive to create, potential • disadvantages: unlimited liability, partners share profit,
conflicts, risk of takeover, financial accounts must be risk of disputes, potential sources of additional
published quarterly for public limited companies, financing remain limited in comparison to corporations
selling shares dilutes ownership and ownership can
be switched
Cooperatives:
Non-governmental organisations:
• owned by its member who come together to work
• Non-governmental organisations towards a common interest
• state their purpose or mission as benefitting society
• run democratically, with members having a say in
or the environment
important decisions
• criteria: non-profit, non-governmental, not a political
• Types:
party, not narrowly focused on human rights, not
• agricultural - farmers coming together to negotiate
involved in criminal activities
lower prices on inputs and pooling asserts to purchase
• Charities
and then share expensive equipment
• non-profit organisations that exist to benefit the
• retail - individual shopkeepers who form cooperatives
public
to better negotiate with suppliers, they also pool their
• Charities enjoy tax advantages under UK law resources
• consumer - set up by consumers in order to benefit
from lower prices or better service
Micro-Finance Providers: • workers - a group of workers who collectively own the
business they work for. Set up to preserve the current
• make financial services available to individuals whose jobs which would otherwise be destroyed in scenario
needs would otherwise not be met by traditional where original owner intends to shut down enterprise
financial institutions like banks • residents - own and maintain public spaces of
• encourage entrepreneurialism residential properties
• Examples: Grameen Bank and Freedom from Hunger
Public-private partnerships: Social Enterprises:
• arrangements whereby the public sector enlists the help of private sector • organisations that engage in
organisations in order to meets its objectives more efficiently, often involve large business activity but that also set
infrastructure projects themselves important goals in
• (+) complete projects gov cannot finance, increased expertise than government terms of improving society or
• (—) expensive, long contract terms which suffer external environment changes protecting the environment.
Sectors: Soletrader:
• Public sector • a type of business organisation run by a single
• all organisations that are owned by the central individual
government or local government, or their agencies. • the sole trader is bound by unlimited liability so is
• Public sector organisations are dedicated to personally liable for all debts of the business
providing services to the public rather than earning a • advantages: easy to set up, owner has entire control,
profit owner keeps all of the profits, financial performance
• Private Sector remains confidential
• all organisations that are owned by individuals or • disadvantages: unlimited liability, no help with decision
groups of individual making, owner assumes all losses, limited access to
• they usually have the goal of earning profits in order financing, no continuity if owner dies
to compensate their owners for the investment they
have made into the organisation
Partnership:
Corporation: • two or more individuals who are each personally
responsible for the debts of the business they own due
• a business owned by numerous shareholders who are to unlimited liability
solely liable for their investment into the business due • usually established under a deed of partnership
to limited liability • advantages: financial performance remains
• advantages: limited liability, independent legal confidential, partners share management responsibility,
identity, can raise large amounts of funds by issuing increased expertise of partners, partners may contribute
shares and continuity even if an owner dies financing
• disadvantages: expensive to create, potential • disadvantages: unlimited liability, partners share profit,
conflicts, risk of takeover, financial accounts must be risk of disputes, potential sources of additional
published quarterly for public limited companies, financing remain limited in comparison to corporations
selling shares dilutes ownership and ownership can
be switched
Cooperatives:
Non-governmental organisations:
• owned by its member who come together to work
• Non-governmental organisations towards a common interest
• state their purpose or mission as benefitting society
• run democratically, with members having a say in
or the environment
important decisions
• criteria: non-profit, non-governmental, not a political
• Types:
party, not narrowly focused on human rights, not
• agricultural - farmers coming together to negotiate
involved in criminal activities
lower prices on inputs and pooling asserts to purchase
• Charities
and then share expensive equipment
• non-profit organisations that exist to benefit the
• retail - individual shopkeepers who form cooperatives
public
to better negotiate with suppliers, they also pool their
• Charities enjoy tax advantages under UK law resources
• consumer - set up by consumers in order to benefit
from lower prices or better service
Micro-Finance Providers: • workers - a group of workers who collectively own the
business they work for. Set up to preserve the current
• make financial services available to individuals whose jobs which would otherwise be destroyed in scenario
needs would otherwise not be met by traditional where original owner intends to shut down enterprise
financial institutions like banks • residents - own and maintain public spaces of
• encourage entrepreneurialism residential properties
• Examples: Grameen Bank and Freedom from Hunger
Public-private partnerships: Social Enterprises:
• arrangements whereby the public sector enlists the help of private sector • organisations that engage in
organisations in order to meets its objectives more efficiently, often involve large business activity but that also set
infrastructure projects themselves important goals in
• (+) complete projects gov cannot finance, increased expertise than government terms of improving society or
• (—) expensive, long contract terms which suffer external environment changes protecting the environment.
