1 / 8

Types of Business Organisation

Types of Business Organisation. BTEC Business. 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

kipling
Download Presentation

Types of Business Organisation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Types of Business Organisation BTEC Business

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

  3. 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)

  4. The Public Sector • Made up of central government, local government, and businesses that are owned by government • In the last twenty years the number of government-owned firms in the UK has shrunk massively • Now, very few examples remain: for instance, the Royal Mail

  5. 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’

  6. 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

  7. 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

  8. 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

More Related