IB Business Management SL - 1.2. Types of organizations

Private sector

Set up by individuals or groups of individuals

Public sector

Ran and owned by the state

Unincorporated businesses

There is no legal distinction between the owner of the business and the business itself, so everything is carried out in the name of the owners

Incorporated business

They have a separate legal entity from their owners.

Types of businesses

Sole traders

The business is owned by only one person.

Partnerships

More than one owner. Partners share responsibilities.

Private limited company

Separate legal entities from their owners, so if the business has debts the owner will not be personally liable. Shares.

Public limited company

Big, multinational companies boasting large numbers of employees. Shares.

Non-profit organizations

They run according to business principles but they do not aim at making profit.

Charities

Non-profits with the aim to raise money for good causes and draw attention to the needs of disadvantaged groups of people.

Pressure groups

Circles of people that attempt to influence decision makers in politics and society.

Public-private cooperation

When the government creates a commercial partnership with the private sector to provide certain goods or services.

Privatizacion

Process through which companies that were originally owned by the state are bought by the private sector.