1.1 Types of organizations

Public Sector

Part of the economy that is owned and operated by the government, providing essential services such as education, health, and defense.

Private Sector

Part of the economy that is owned and operated by private individuals or companies, focusing on profit generation.

Nationalization

The process of transferring ownership of a private sector business to the public sector government.

Privatization

The process of transferring ownership of a public sector organization to the private sector.

Unlimited Liability

A business owner's personal assets can be seized if the business incurs debt.

Limited Liability

An owner's financial responsibility for a business is limited to their investment in the company.

Sole Trader

A business owned and operated by one person who retains all profits but also bears unlimited liability.

Partnership

A business owned by two or more individuals who share investment, responsibility, and profits.

Corporation

A legal entity that is separate from its owners, featuring limited liability and continuity of existence.

Non-Profit Organization (NPO)

An organization that operates without profit as its primary goal, focusing on providing services or promoting a cause.

Cooperative

A business owned and operated for the benefit of its members, who are typically customers or employees.

Shareholder

An individual or entity that owns shares in a corporation and is entitled to a share of the profits.

Merit Goods

Services provided by the government to ensure availability regardless of individual income, such as education and health.

Social Enterprise

A business that aims to improve society or the environment while also generating profit.

Pressure Groups

Organizations that aim to influence policy and decision-making processes to achieve specific objectives.

Charity

A non-profit organization that raises funds to support a cause or provide services to those in need.