Types of Business Organisation

Two Sectors
The economy can be divided into two sectors: The Private Sector The Public Sector

The Private Sector

Private individuals and firms that are owned by private individuals Firms in the private sector include:
Sole Traders Private Limited Companies (Ltd) Partnerships Public Limited Companies (PLC)

sole proprietorship
A sole proprietorship, also known as a sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business.

PRIVATE COMPANY
A company whose ownership is private. EX:POTHYS

Private Sector Firms

One of the key differences is between: Sole traders and partnerships whose liability is unlimited And Private Limited and Public Limited Companies, who have limited liability

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PATNERSHIP FIRM

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Not For Profit Businesses

Many charity-based business organisations are run as not for profit operations They typically receive donations or funds from groups or government Any financial surplus is ploughed back into the business The organisation does not aim to generate profits

CO OPERATIVE SOCITIES
A cooperative (also cooperative; often referred to as a co-op) is a business organization owned and operated by a group of individuals for their mutual benefit. EX:AMUL

The Public Sector

The Public Sector, sometimes referred to as the state sector is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal. Made up of central government, local government, and businesses that are owned by government EX:BSNL,

Other Business Types

Co-operatives are owned by their staff, who are members of the firm Profits are shared amongst the members Losses too must be shared

Franchises
Many businesses today are franchises A business idea is licensed to a franchisee The owners of the brand receive a license fee The franchisee gains the right to use the business brand