Types of Business Organisation and Ownership
Type of business, purpose and ownership (P1)
To run a business smoothly or effectively all business have aims or purpose, this could be survivor, to grow, to become a market leader. A business also aims to provide exception service or to create a reputation as the best on market.
Types of business
To understand how business works and what they set out to achieve, it’s necessary to have an understanding of the main types of business sectors which exists within a business organisation.
There are three main types of organisation in this country: public sector and two types of private sector organisations.
* Public sector
Public sector organisations are run by the government for the people. Examples are government departments such as the Luton borough council which owned by the government.
* Private sector
Organisation is made up of: * For profit * Not-for-profit
Types of ownerships
Business aiming for profit
The main types of business in the profit sector are: * Sole traders * Partnerships * Private limited company (PLC) * Public limited company * Co-operatives * Charities or none-profit makers * franchises
Purpose of a business * The basic purpose of any business is to increase their chances of making profits. * A business will use source of information to build a comprehensive well through-out business plan that helps reaching its goals. * The purpose of a business is to develop a business plan which helps thinking through some important issues that may not have considered yet.
Having purpose of any business usually helps creating a focused business environment. Business will be maintained according to its purposes.
To have an understanding of a profit making business and a none-profit making business, there are couple of business examples bellow:
ORGANISATION 1 : ASDA PRIVATE LIMITED COMPANY (Profit making company)
Asda is a one of the biggest British supermarket which retails food, electronics, clothing, toys
To run a business smoothly or effectively all business have aims or purpose, this could be survivor, to grow, to become a market leader. A business also aims to provide exception service or to create a reputation as the best on market.
Types of business
To understand how business works and what they set out to achieve, it’s necessary to have an understanding of the main types of business sectors which exists within a business organisation.
There are three main types of organisation in this country: public sector and two types of private sector organisations.
* Public sector
Public sector organisations are run by the government for the people. Examples are government departments such as the Luton borough council which owned by the government.
* Private sector
Organisation is made up of: * For profit * Not-for-profit
Types of ownerships
Business aiming for profit
The main types of business in the profit sector are: * Sole traders * Partnerships * Private limited company (PLC) * Public limited company * Co-operatives * Charities or none-profit makers * franchises
Purpose of a business * The basic purpose of any business is to increase their chances of making profits. * A business will use source of information to build a comprehensive well through-out business plan that helps reaching its goals. * The purpose of a business is to develop a business plan which helps thinking through some important issues that may not have considered yet.
Having purpose of any business usually helps creating a focused business environment. Business will be maintained according to its purposes.
To have an understanding of a profit making business and a none-profit making business, there are couple of business examples bellow:
ORGANISATION 1 : ASDA PRIVATE LIMITED COMPANY (Profit making company)
Asda is a one of the biggest British supermarket which retails food, electronics, clothing, toys