1.2 Types of Organisation

Question 1

Documents required to become a limited company

Answer 1

Memorandum of association

Articles of association(or incorporation)

Question 2

Microfinance providers

Answer 2

A type of banking service provided to unemployed or low-income earners who would otherwise struggle to gain external finance. E.g savings, insurance, loans and remittance transfers.

Question 3

Microfinance providers advantages & drawbacks

Answer 3

Accessibility (helps people in poverty gain money)
Job creation (can create new job opportunities)
Social wellbeing (better access to health care, don't have to take children out of school)

Immorality (profiting off people in poverty) 
Limited Finance (risk of people defaulting therefore less money provided)
Limited eligibility (to minimise risk for business)

Question 4

Cooperatives

Answer 4

For-profit social enterprises owned and run by their members such as employees, managers, customers.

Question 5

Cooperatives advantages & drawbacks

Answer 5

Higher finance pool (more people = more money)
Equal voting rights
Limited liability
More motivation 
Chance for government grants 

Less control
You may have lots of responsibility but only 1 vote
Difficult to attract investors (not formed to generate a return on investment)

Question 6

Public-Private Partnerships

Answer 6

Arrangements where the public sector enlists the help of a private sector organisation in order to meet its objectives more efficiently. (eg. large infrastructure projects)

Question 7

Public-Private Partnerships advantages & drawbacks

Answer 7

Governments may benefit from the expertise of private enterprise.
Because the private partner shares in the risk and reward of the project, they are incentivized to innovate in order to save costs.

Setting up and monitoring is expensive (not good for small projects)
Not suitable for IT (as conditions change and contracts signed are long term therefore they cannot be renegotiated)

Question 8

Non-governmental organisations

Answer 8

Do not aim to make profit. Set up and run for the benefit of society (Private Sector)

Question 9

Operational NGOs

Answer 9

Established from a given objective or purpose eg. relief based, community projects (Unicef, Oxfam)

Question 10

Advocacy NGOs

Answer 10

Take more aggressive approach to promote or defend a cause, raising awareness through direct action (Amnesty International, Greenpeace)

Question 11

Charities

Answer 11

A non-profit social enterprise that provides voluntary support for good causes (animals, children, environment)

Question 12

Non profit social enterprises

Answer 12

These are businesses run in a commercial like manner but profit isn’t the main goal. Surplus revenues are used to achieve social goals.