1.2 Types of organizations

Sole trader

________: business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits.

certificate

Share: ________ confirming part ownership of a company and entitling the shareholder to dividends and certain shareholder rights.

Cooperative

________: group of people acting together to meet the common needs and aspirations of its members, sharing ownership and making decisions democratically.

Government

________- directed but with private sector finance and management.

Partnership

________: business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibilities.

Charities

________: organization set up to raise money to help people in need or to support causes that require funding.

Ltd

Private limited company (________): small to medium- sized business that is owned by shareholders who are often members of the same family; this company can not sell shares to the general public.

Microfinance

________: provision of very small loans by specialist finance businesses, usually not traditional commercial banks.

Privatization

________: sale of public sector organizations to the private sector.

Public sector

________ comprises organizations accountable to and controlled by central or local government (the state)

Social enterprise

________: business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximizing returns to owners.

private partnership

Public- ________ (PPP): involvement of the private sector, in the form of management expertise and /or financial investment, in public sector projects aimed at benefiting the public.

Public sector organizations

________ provide essential goods and services for individual citizens and organizations.

Mixed economy

economic resources are owned and controlled by both private and public sectors

Free-market economy

economic resources are owned largely by the private sector with very little state intervention

Command economy

economic resources are owned, planned and controlled by the state

Privatization

sale of public sector organizations to the private sector

Public corporation

business enterprise owned and controlled by the state also known as nationalized industry or public sector enterprise

Sole trader

business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits

Partnership

business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibilities

Limited liability

the only liability or potential loss a shareholder has if the company fails is the amount invested in the company, not the total wealth of the shareholder

Share

certificate confirming part ownership of a company and entitling the shareholder to dividends and certain shareholder rights

Shareholders

individuals or institutions that buy/own shares in a limited company

Private limited company (Ltd)

small to medium-sized business that is owned by shareholders who are often members of the same family; this company cannot sell shares to the general public

Public limited company (pic)

limited company, often a large business, with the legal right to sell shares to the general public; its share price is quoted on the national stock exchange

Social enterprise

business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximizing returns to owners

Economic

to make a profit or surplus to reinvest back into the business and provide some return to the owners

Social

to provide jobs or support for local, often disadvantaged, communities

Environmental

to protect the environment and to manage the business in an environmentally sustainable way

Cooperative

group of people acting together to meet the common needs and aspirations of its members, sharing ownership and making decisions democratically

Microfinance

provision of very small loans by specialist finance businesses, usually not traditional commercial banks

Public-private partnership (PPP)

involvement of the private sector, in the form of management expertise and/or financial investment, in public sector projects aimed at benefiting the public

Private finance initiative (PFI)

investment by private sector organizations in public sector projects

Non-profit organization

any organization that has aims other than making and distributing profit and which is usually governed by a voluntary board

Non-governmental organization (NGO)

legally constituted body with no participation or representation of any government which has a specific aim and purpose, e.g

Charities

organization set up to raise money to help people in need or to support causes that require funding