Different Types of Business OrganisationPresentation Transcript
Who Is Involved In Business Activity?
Since different businesses attempt to do different things, different types of people are responsible for starting them in the first place. In all, 3 main types of businesses (organisations) need to be considered. These are: Public Sector Organisations Private Sector Organisations Voluntary Sector Organisations (eg Charities)
Public Sector Organisations
Public Sector – is owned and run by the state (Government) for the people. People pay taxes to the Government and this money is used to finance most of the public sector.
To provide essential public services
To use resources well for the benefit of the community
The 2 most important parts of the State are:- Central Government Local Government
CENTRAL GOVERNMENT (London/Parliament)
National Health Service
LOCAL GOVERNMENT (eg East Lothian)
Primary & Secondary Education
Parks and Sports Facilities
The Public Sector is a Provider Producer Buyer PROVIDER The Public Sector in the UK provides a large range of services. Part is provided free of charge to consumers (like School) and prices are charged for others, eg entrance fees to swimming pools and sports facilities.
PRODUCER The Public Sector produces some of the goods and services like education and health care. BUYER The Public Sector buys in products to help it provide various services, eg tanks (defence), road building services, equipment for parks etc
PUBLIC CORPORATIONS These are companies that are owned by central government. A government minister appoints a chairperson and board of directors to run the company on the governments behalf. Public corporations include the BBC and Royal Mail . Public corporations receive grants from the government and also raise finance from the public. The BBC charges the public for a TV licence.
Private Sector Organisations
Private Sector Businesses are owned and run by private individuals. Examples of Private Sector businesses are: