TYPES OF ORGANIZATION

BY, RAJU YADAV SUJAY THATE TEJAS BHUJBAL YOGITA PARAD

DEFINITION
A social unit of people that is structured and managed

to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks.

TYPES OF ORGANIZATION
There are two types of Organizations

The Private Sector The Public Sector

THE PRIVATE SECTOR

The private sector is the organization, which is run by

private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state.
Firms in the private sector include:

Sole Traders Private Limited Companies (Ltd) Partnerships Public Limited Companies (PLC)

SOLE TRADER
A sole trader is a type of business entity that is owned and run by

one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor's. It is a "sole" proprietorship in contrast with partnerships.
Glos and Baker write that "A sole proprietorship is a business

owned by one person who is entitled to all of its profits,"

Reed and Conover say "The single or the sole proprietorship is a

business owned and controlled by one man even though he may have many other persons working for him.

PRIVATE LIMITED COMPANY

A type of company that offers limited liability, or legal protection

for its shareholders but that places certain restrictions on its ownership. These restrictions are defined in the company's bylaws or regulations and are meant to prevent any hostile takeover attempt.
The major ownership restrictions are: (1) shareholders cannot sell or transfer their shares without

offering them first to other shareholders for purchase, (2) shareholders cannot offer their shares to the general public over a stock exchange, and (3) the number of shareholders cannot exceed a fixed figure (commonly 50). An example of a limited liability company is Chrysler Group, LLC, whose ownership is separate from its management.

PARTNERSHIPS
A type of business organization in which two or more

individuals pool money, skills, and other resources, and share profit and loss in accordance with terms of the partnership agreement. In absence of such agreement, a partnership is assumed to exit where the participants in an enterprise agree to share the associated risks and rewards proportionately .

PUBLIC LIMITED COMPANY

The standard legal designation of a company which

has offered shares to the general public and has limited liability. A Public Limited Company's stock can be acquired by anyone and holders are only limited to potentially lose the amount paid for the shares. Two or more people are required to form such a company, assuming it has a lawful purpose.

THE PUBLIC SECTOR

The public sector, referred to as the state sector or the

government sector, is a part of the state that deals with either the production, ownership, sale, provision, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.
Examples of public sector activity range from

delivering social security, administering urban planning and organizing national defense.

THE DIFFERENCE BETWEEN THE PRIVATE AND PUBLIC SECTOR

The Private Sector The private sector is usually composed of organizations that

are privately owned and not part of the government. These usually includes corporations (both profit and non-profit), partnerships, and charities.
An easier way to think of the private sector is by thinking of

organizations that are not owned or operated by the government. For example, retail stores, credit unions, and local businesses will operate in the private sector.

CONTD.
The Public Sector The public sector is usually composed of organizations

that are owned and operated by the government. This includes federal, provincial, state, or municipal governments, depending on where you live.
Some examples of public bodies are educational

bodies, health care bodies, police and prison services, and local and central government bodies and their departments.

THANK YOU