1.2 Types Of Organisations Flashcards
Charities
Non-profit social enterprises that provide voluntary support
Cooperatives
For-profit social enterprises set up, owned and run by their members
Company/corporation
Business owned by shareholders. It has been issued a certificate of incorporation, giving it a seperate legal identity from its owners
Deed of partnership
Legal contract signed by the owners of a partnership. The formal deeds specify the name and responsibilities of each partner and their share of any profits/losses.
Incorporation
Legal difference between the owners of a company and the business itself. This ensures that the owners are protected by limited liability
Initial public offering (IPO)
Business sells all or part of its business to shareholders on a stock exchange for the first time
Limited liabiliy
Restriction on the amount of money that owners can lose if their business goes bankrupt
Microfinance
Type of financial service aimed at entrepreneurs of small businesses, especially females and those on low incomes
Non-governmental organisations (NGO)
Private sector not-for-profit social enterprises that operate for the benefit of others rather than primarily aiming to make a profit
Partnership
Type of private sector business owned by 2-20 people (partners). They share the responsibilities and burdens.
Private limited company
Business owned by shareholders with limited liability but whose shares cannot be bought or sold to the general public
Private sector
Part of the economy run by private individuals and businesses, rather than by the government.
Public limited company
Incorporated business that allows the general public to buy and sell shares in the company via stock exchange
Public-private company
Government works together with the private sector to jointly provide certain goods or services
Public sector
Part of the economy owned/controlled by government
