Chapter 1.2 - Types Of Organizations Flashcards
Charities
Non-profit social enterprises that provide voluntary support for good causes (from society’s point of view), such as protection of children, animals and the natural environment.
Cooperatives
for-profit social enterprises are set up, owned and run by their members, who might be employees and/or customers
Company (or corporation)
Refers to a business that is owned by shareholders. It has been issued a certificate of incorporation, giving it a separate legal identity from its owners
Deed of Partnership
the 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 or losses
Incorporation
Means that there is a 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)
Occurs when a business sells all or part of its business to shareholders on a stock exchange for the first time
Limited Liability
Is a restriction on the amount of money that owners can lose if their business goes bankrupt, i.e., shareholders cannot lose more than they invested in the company.
Microfinance
Is a type of financial service aimed at entrepreneurs of small businesses, especially females and those on low incomes.
Non-governmental Organizations (NGO)
Are private sector not-for-profit social enterprises that operate for the benefit of others rather than primarily aiming to make a profit,
Partnerships
Are a type of private sector business owned by 2-20 people (known as partners). They share the responsibilities and burdens of running and owning the business
Private Limited Company
Business owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public
Private Sector
Part of the economy RUN BY PRIVATE INDIVIDUALS AND BUSINESSES, rather than by the government, e.g. Sole Traders, partnerships, companies and cooperatives.
Public Limited Company
incorporated business that allows the general public to buy and sell shares in the company via a stock exchange. All shareholders enjoy limited liability.
Public-private partnerships (PPP)
Occur when the government works together with the private sector to jointly provide certain goods or services.
Public Sector
Part of the economy controlled by the government. Examples include state health and education services, the emergency services and national defence.
Sole Trader
Self-employed person who runs and controls the business and is the sole person held responsible for its success (profits) or failure (unlimited liability).
Social Enterprises
Are revenue-generating business with social objectives at the core of their operations. They can be for-profit or nonprofit businesses, but all profits or surpluses are reinvested for that social purpose rather than being distributed to shareholders and owners.
State-owned Enterprises
Are organizations wholly owned by the government.
Stock Exchange
Is a market place for trading stocks and shares of public limited companies. Examples include the London Stock Exchange (LSE) and the New York Stock Exchange (NYSE)
Unlimited Liability
Is a feature of sole traders and ordinary partnerships who are legally liable for all monies owed to their creditors, even if this means that they have to sell their personal possessions to pay for their debts.
