Types and Purposes of Organisations: Public, Private, and Voluntary

Business and Business
Environment

INTRODUCTION
Business refers to the process of selling and purchasing goods and services to running the
company. Business environment refers to an atmosphere where an organisation operates and run
its business by manufacturing goods and services according to their needs and requirement with
the motive of provide satisfaction to the customers. Business environment is the combination of
internal and external components of business which create impact upon the business of the firm
favourably as well as unfavourably (Aithal, 2016). This assignment is based on Unilever which
is a British-Dutch transactional consumer goods organisation. This firm was established in 1929
and headquartered in London, UK or operate its business globally. As a business writer it will be
mention in the article about different types and purposes of organisations like public, private and
voluntary sectors. Further, will explain about different legal structure in the private sector,
organisation structure, size and scope of the business. The complexities of different business
structures and interrelationship of different organisational functions will also define.
TASK 2
Different types and purposes of organisations
There are several types of business firms like private, public and voluntary organisations
and they are operating their business with different motives and purposes. The brief explanation
of these kinds of companies is mentioned as beneath:
Public organisation- It refers to those organisation which are operated and run by the national
authorities of the country and control the business actions and operation by their own developed
rules and regulations. These can be those firms that have sold their shares on a public stock
exchange by an initial public offering to the general public. For instant, Tesco, Shell, HSBC,
Aviva etc. are some example of public organisations.
Purpose- The purpose of this kind of these kinds of organisations to provide employment
to the people of the nation and make contribution in the economic system of the country in term
of growth and development.

Private organisation- It refers to a firm which held and operate its business under a private
ownership (Ajayi, 2016). These kinds of organisations are regulated by a private body by
following their own rules and regulations which are formed by considering the government
legislations. For example, Sainsbury, Unilever, Marks & Spencer, ASDA, Burberry etc. are
private companies.
Purpose- The main motive of these types of companies are earned profit and created job
opportunities for people of nation (Couto, Lopes and Sousa, 2015). They also make their
contribution in improving and developing the economic condition of the country.
Voluntary organisation- It indicates to those organisations which are operate their business for
social welfare and improving the living standard of the people. Basically these are
nongovernmental organisations and make their contribution in improving individual’s lives and
living standards. For example, Oxfam, NHS, Save the children etc. voluntary firms.
Purpose- The major purpose of these kinds of companies is to provide job options to
them so that they can make development and improvement in their living standards.
2. Different legal structure in the private sector
There are different legal structures of private organisations under which they operate and
make operations their business activities and operations in the business environment. Unilever is
Private Sector Company so consists different legal structure. Some of them are mentioned as
beneath:
Sole trader- It refers to a one person business majorly found in trades where only small
amounts of finance are needed to establish and where there are very less number of benefits to
the existence of larger companies. Sole traders often employ remunerated workforce, but they
alone have to offer all the monitory value and bear all the risks of the business. It can be a
business in which a person who is the exclusive owner of a business entitled to keep all
profitability after taxation has been paid but liable for all losses. The benefits of these kind of
business are that the owner of the firm can earns maximum incentive from the business.
Legislations also not needed a sole proprietorship to publish its financial accounts or any these
kind of documents to any person of the public.
Partnership- It is a legal form in business activities between two or more people who
share management and profits. With it partners administrate the organisation and assume
responsibleness for the partnership’s debts and other obligations (Davies, 2016). In it, the