MOD003337 How Business Operates Level 6

Task 1

1.1 Types of organisations in public and private sector

In every organisation there are different business organisation that performing their tasks and functions for accomplishing the goals and objectives of business. Company dealing in different products and services for earning profits and full-fill the desires of organisation. All the corporate who running their business is try to uplift the living standard of people from their services. Majorly business world comprises of two sectors I.e. public and private sector which described below:-

Public company:- It includes all the public goods and government services who work for providing services to general public. Further, all rules and legal regulations are established by government authorities and decision related to price, quality and production is taken by them only For example Audit commission which is UK based statutory corporation whose main aim is to appoint auditors that give services to local bodies . The main objective of public sector is to uplift the living standard of people, therefore different types of public sector companies are described below:-

Departmental undertakings:- This is consider as most traditional and oldest form of public company where all the decision making are taken by strategic authority of government only.

Statutory corporations:- These are those public corporation which are established by the special act passed by parliament. They are owned by government with or without shareholders or might be body without shareholders. For example British Railways which is consider as state owned railway that give service to large audiences.

Government company:- these are those public association created under companies act 1985 or 2006 and fully partially owned by public sector only. For example Channel four television corporation which are under the control of public sector only.

Private company:- These types of companies are owned, controlled and managed by the rules regulation of private members only. Further, these private person set their own organisation structure and become the corporate culture more flexible in order to adapt all the changes coming in external environment. Following are the types of private companies are stated below:-

Sole proprietorship:- These type of businesses are run by single individual only and they come with their own capital and share all the profits and losses of business because of unlimited liability features covered under it. Owner take all decision without consent of other partners.

Partnership:- it can be described as business in which two or more partners come under the partnership business. All the terms and condition related to profit sharing, capital investment and losses are prescribed under it only. For example ben and jerry company firstly come in partnership business of ben cohen and jerry Greenfield in 1978 and earn huge profit from business.

Limited company:- Also known as joint stock company in which two business are come together in order to accomplish common objectives.