This document discusses different types of organizations. It outlines that private sector organizations are owned by private individuals and their main goal is usually profit, while public sector organizations are owned by the government and ensure access to basic needs. It also describes privatization as the transfer of public corporations to private ownership, with benefits including more competition but drawbacks being individuals pay for basic services. The document concludes by mentioning types of private sector organizations like sole traders, partnerships, and companies, as well as non-profits, and public-private enterprises like Private-Public Partnerships.

1. Types of Organizations
Unit 1.2 with HL Extension

2. Private/Public Sector of the
Economy
Private Sector Organizations
– Owned and controlled by private individuals
– Are not owned by the government
– Main goal (usually) is profit
– Example: Coca Cola, Astrobar
Public Sector Organizations
– Owned and controlled by the government
– These organizations are called public
corporations
– Ensures everyone has access to basic needs
– Protects citizens
– Reduces unemployment
– Examples: State schools, postal service - USPS

3. Privatization
When a public corporation’s assets have
been sold or transferred to the private
sector
Good or bad?
– Benefits
Inefficient monopolies are exposed to competition
(lower prices in some cases)
More choice to consumers
Competition creates innovation
Less financial burden on taxpayers
A way for gov’t to raise money (in short term)
– Drawbacks
Individuals pay for basic services
Organizations main goal is profit (which can affect
quality)

4. Types of Organizations Private
Sector
Profit-based Organizations
– Sole Trader
– Partnerships
– Companies
Private Limited Companies
Public Limited Companies
Non-profit Organizations (NPOs)
– Non-governmental Organizations (NGOs)
– Charities
– Pressure Groups

5. Public-Private Enterprises
When government creates a
partnership with private companies
– Private-Public Partnerships (PPP)