Different Types of Organizations in Business Environment

BUSINESS AND
BUSINESS
ENVIRONMENT

Different types of
organization

CONTD
Private organization:
 It is controlled by individual, not a part of government. The
basic means of this sector is to gain more profit.
 This type of firm have their own legal identity and this
usually includes both profit and non- profit corporations. For
example retail store, credit unions and local businesses.
 In this sector, activities are guided to earn more profit.
 Further it is dived into Sole traders, in this type of private
organization person simply sets up to provide goods for
profit, there is no legal formality require and sole trader is
responsible for day to day management.
 For example, storekeepers, plumbers etc

CONTD
Public organization:
 These type of organization are owned by the government.
 Its main aim is not to generate profit.
 To serve public, they get funds from taxes, fees and through
financial transfers. For example, education, electricity, gas
oil etc.
 sometimes the public sector will be a partner in private
sector to create public- private partnership.
 These type of relationship work together to jointly deliver a
service and product.
 The main purpose of these sector is to enhance the level to
this sector and encourage people for more trust.