Enterprise
1.1) Role of the finance Function
Business sectors and types:
What is an organisation?
Social arrangement
Collective goals
Controls its own performance
Has a boundary separating it from its environment
Boundaries can be physical or social
Private sector
Owned and operated by private individuals or institutions
Two main types
Those seeking profit for their owners, and
Those that have other objectives (NPO)
Types of Private sector organisations
Profit seeking organisations=Sole traders or partnerships &
companies:
-The owner & the enterprise are
considered as one thing
This is a separate legal person
Not for profit organisation=Charities, societies, associations,
not focusing on profit, but on surplus
Mutual organisations=Commercial operations owned by
customers. Building societies, mutual insurance, stokvels,
mutual banks
Multinational corporations= Operate in more than one
country: Adidas, PepsiCo, etc
Public sectors:
Usually, state owned
Two main groups
1. Those that provide public services
Hospitals
Schools
The police and the armed forces
, State-owned industries/entities
2. State-owned industries
Government Employee Pension Fund
Transnet
South Africa Airways (SAA)
Non-Governmental organisations
Private organisations that operate in the public sector by providing
services to the community or protecting the environment
Main features
Generating a profit is not a primary goal
Not directly linked to the government
The World Bank defines these as “private organisations that operate in the
public sector and pursue activities to relieve suffering
Promote the interests of the poor
Protect the environment
Provide basic social services
Undertake community development
Many of the largest NGO’s are charities such as Oxfam and the Red
Cross
Activity: public or private
NWU=public
Eskom=public
South Africa Institute of Charted Accountants=private
PWC=private
Gift of the givers Foundation=private
Famous Brands Management CO.(Pty) Ltd=private
Airports Company SA=public
Mediclinic= private
Coca-Cola=private
Effect of the organisation type on finance
function
1.1) Role of the finance Function
Business sectors and types:
What is an organisation?
Social arrangement
Collective goals
Controls its own performance
Has a boundary separating it from its environment
Boundaries can be physical or social
Private sector
Owned and operated by private individuals or institutions
Two main types
Those seeking profit for their owners, and
Those that have other objectives (NPO)
Types of Private sector organisations
Profit seeking organisations=Sole traders or partnerships &
companies:
-The owner & the enterprise are
considered as one thing
This is a separate legal person
Not for profit organisation=Charities, societies, associations,
not focusing on profit, but on surplus
Mutual organisations=Commercial operations owned by
customers. Building societies, mutual insurance, stokvels,
mutual banks
Multinational corporations= Operate in more than one
country: Adidas, PepsiCo, etc
Public sectors:
Usually, state owned
Two main groups
1. Those that provide public services
Hospitals
Schools
The police and the armed forces
, State-owned industries/entities
2. State-owned industries
Government Employee Pension Fund
Transnet
South Africa Airways (SAA)
Non-Governmental organisations
Private organisations that operate in the public sector by providing
services to the community or protecting the environment
Main features
Generating a profit is not a primary goal
Not directly linked to the government
The World Bank defines these as “private organisations that operate in the
public sector and pursue activities to relieve suffering
Promote the interests of the poor
Protect the environment
Provide basic social services
Undertake community development
Many of the largest NGO’s are charities such as Oxfam and the Red
Cross
Activity: public or private
NWU=public
Eskom=public
South Africa Institute of Charted Accountants=private
PWC=private
Gift of the givers Foundation=private
Famous Brands Management CO.(Pty) Ltd=private
Airports Company SA=public
Mediclinic= private
Coca-Cola=private
Effect of the organisation type on finance
function
