Exercise: Explain the main characteristics and the purposes of private sector.

Give example and explain

which type of private company it is.

Private sector

1. Purposes of private sector is to make more profit and employ more workers. The ownership and
control of the organizations is in the hands of private individuals or groups. A company which an
individual or a group own at least 51% of total share is considered private sector:
- Private sector establishes a proportion of the market.
- These companies are compatible with the purposes of their owners
- This sector is classified by legal structure.
2. Some features of employees from private sector are:
- Have a better chance of promotion as these companies prefer the competence and ability of
employee.
- Earn more than public companies and voluntary organizations.
- Obtain a bigger amount of workload.
3. Type of private sector
3.1. Sole trader/Proprietorship:
- Sole trader is own by only one individual who have unlimited personal liability to the
business. If the business goes down, the individual has to be fully responsible to the debt.
- These companies are not being registered and have no legal entity. They have to declare to
the government in case of deceasing of start-up capital.
3.2. Partnership:
- Partnership are companies that have more than one owner and are ordained legal entity
status.
- There are 2 types of partner: at least 2 unlimited-liability partners and limited partners who
only participate in investing the capital and responsible to debt of company by the
percentage of investment.
- They are unavailable to stock market.
3.3. Limited liability:
- There are two types of company:
Limited liability company with one member.
Limited liability company with equal or more than 2 members with maximum 50 members.
- The liability of members in the company depend on their percentage of share in the capital.
- Legal entity is ordained.
- They also do not have the right to join stock market.
3.4. Jointstock company
- There are at least 3 shareholders and no limit on the number of board members.
- Members’ liability is limited.
- Legal entity is ordained.

Example: Tan A Dai Thanh Group is a Joint stock company.

Legal representative: Mrs. Nguyen MinhNgoc
“Thành lập từ năm 1993 và được điều hành bởi Đại gia đình có 3 thế hệ là doanh nhân, Tập đoàn Tân
Á Đại Thành đã trở thành Tập đoàn đa quốc gia – Xác lập và duy trì vị thế là doanh nghiệp sản xuất và
cung cấp Bộ giải pháp tổng thể về nguồn nước hàng đầu Việt Nam, hướng ra khu vực và thế giới. Tự hào
là Thương hiệu Quốc gia - Tân Á Đại Thành hiện đang sở hữu hệ thống 19 Công ty thành viên; 15 Nhà
máy công nghệ cao tại Việt Nam và Lào; 300 Chi nhánh trực thuộc; hơn 30.000 Điểm bán hàng trên toàn
quốc cùng hệ sinh thái 9 Dòng sản phẩm. Trong đó, Bồn inox - Bồn nhựa, Bình nước nóng và Máy nước
nóng năng lượng mặt trời đang chiếm giữ thị phần số 1 Việt Nam.”

They are registered as a Joint stock company in the vietnamese official tax code website.
Source: https://masothue.com/1100797006-cong-ty-co-phan-tap-doan-tan-a-dai-thanh