1.2 Types of Organisations Flashcards
PUBLIC SECTOR- FINANCED
Income tax, National Insurance, Air passenger duty, Fuel Duty.
PUBLIC SECTOR- LEVELS WITHIN
UK GOV, SCOTTISH GOV, LOCAL GOV.
WHAT LEVELS DO- UK GOV (DES/EXAMPLE)
Gov oversee all. Economic policies, Defence and International relations. NHS.
SCOTTISH GOV (DES/EXAMPLE)
Limit but devolved power. Health, education, police, transport.
LOCAL COUNCIL (DES/EXAMPLE)
32 Authorities, funded by SCOT GOV. Housing, bins, libraries, schools.
PUBLIC- SCOTTISH ENTERPRISES
Provides support- funds, management training, support for international trading, Assistance to businesses.
PRIVATE SECTOR ORGANISATIONS- LIMITED COMPANIES (TYPES)
PUBLIC(PLC), PRIVATE(LTD)
PUBLIC - PLC (DES)
Owned by stakeholder, control by board of directors. Can sell shares to anyone(stock market), minimum of 2. To produce memorandum by law. Limited liability.
PRIVATE- LTD (DES)
Owned by stakeholders, control board directors. Shares to invited individuals only. Minimum of 1. Memorandum by law. Limited liability.
PLC - (ADV&DIS)
Easier to raise money (stock market), Easier growth. Disagreements over running, Threat of takeover, difficulty over setting objective other than profit. Publish.
LTD- (ADV&DIS)
Control not lost, Experience/skill from stakeholders gained, Limited liability. dividends paid to all stakeholders end of year, limited finance opportunities, they produce annual accounts=competitors can view.
FRANCHISING- ROLES (DES)
FRANCHISOR(OWNER OF OVERALL BUSINESS) FRANCHISEE (PAYS RIGHT TO OPERATE THE FRANCHISE). Right to trade under name and established company, run in agreed way with Franchisor.
Franchisor (ADV&DIS)
Expand quickly/cheaper, receives share of profits/sales, become a known brand. Decrease quality of brand, Loss of control, conflict.
Franchisee (ADV&DIS)
High chance of success, attract customers quickly, gained training from franchisor. Less sense of control, profits/sales given to franchisor, franchisor go out of business.
MULTINATIONALS (FEATURES)
Operations in multiple countries, Global brand, take over markets across world, budgets can be larger in other countries, influence economies, distinct home base country.
