Topic 1.2 - Types of organizations Flashcards
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, who might be employees and/or customers
Company (corporation)
a business that is owned by shareholders
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
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
Limited Liability
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
Micro finance
a type of financial service aimed at entrepreneurs of small businesses
Non-governmental organizations (NGO)
private sector not-for-profit social enterprises that operate for the benefit of others rather than primarily aiming to make a profit
Partnerships
a type of private sector business owned by 2-20 people.
Private limited company
a business owned by shareholders with limited liability but whose shares cannot be bought by or sold to the general public
private sector
the 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
an incorporated business that allows the public to buy and sell shares in the company via a stock exchange
Public-private partnerships
occur when the government works together with the private sector to jointly provide certain goods or services
Public sector
the part of the economy controlled by the government
