Topic 1.2 Types of Organisations Flashcards
Continuity
Continue to operate through change of owners due to being an incorporated business
Bureaucracy
Regulations
Charities
Non-profit social enterprises that provide voluntary support for good causes
Cooperatives
For-profit social enterprises set up, owned and run by their members
Corporations
For-profit organisations owned by shareholders
Deed of Partnership
Legal contract between partners in a partnership
Flotation
When businesses first sell all/part of its business to shareholders
For profit (commercial) organisations
Organisations that have making a profit as a goal
For profit social enterprises
Profit generating businesses with primarily social objectives
Free market economies
Economic system where the market largely determines what goods and services are produced
Incorporation
A legal difference between the owners of a company and the business itself
Initial Public Offering
The process of a business sells all or part of its business to shareholders on a stock exchange for the first time
Joint-stock companies
When stocks of a business are held together by multiple titles (Corporations/Companies)
Limited liability
A restriction on the amount of money that owners can lose if their business goes bankrupt
Microfinance Providers
Financial service (for-profit social enterprise) aimed at entrepreneurs of small businesses
Non profit social enterprises/organisations (NPOs)
Organisations that don’t have profit as their main objective, rather social causes/benefits
Ordinary Partnerships
Partnership of 2 - 20 people/partners
Organisation
Commercial enterprise
Partnerships
Type of private sector business owned by 2-20 people
Planned economies
Economic system directed by government agencies
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
Businesses not associated with the government
Private voluntary organisations
aka NGO
Privatised
When a public sector business becomes private
Public limited company
Incorporated business that allows the public to buy and sell shares in the company via a stock exchange. All shareholders enjoy limited liability
Public private partnerships
When the government works together with the private sector to jointly provide certain goods or services
Public sector
Businesses controlled by the government
Recession
Reduced economic activity
Shareholders
Individuals or businesses that have invested money to provide capital for a company
Silent partners
Investors of partnerships eligible for portion of the profit
For-profit social enterprises
Revenue-generating business with social objectives at the core of their operations
Sole traders
Self-employed person who runs and controls the business
Stock exchange
A market place for trading stocks and shares of public limited companies
Unincorporated
When the owner and business are legally on the same basis
Unlimited liability
Legally liable for all monies owed to their creditors
BOD
Board of Directors
Consumer Cooperatives
Owned by customers who buy the goods and/or services for personal use
Worker Cooperatives
Owned by employees
Producer Cooperatives
Cooperatives that join & support each other to process or market their products
Non Government Organisations
Businesses of the private sector that run for a social cause/benefit
Takeover
Change of business owners
Bankrupt
Unable to pay debts
Nationalised
Deregulation
