Types and Purposes of Organizations

This document provides an explanation of different types and purposes of organizations in public, private, and voluntary sectors, along with their legal structures. It discusses the sole trader, partnership, limited companies, voluntary organizations, franchises, charity organizations, and government organizations. The document also explains the size and scope of these organizations.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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P1: Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures
In the business world, 4 chief organization exits that includes
1. The sole trader
2. The partnership
3. Limited Companies
4. The voluntary Company
5. Franchises
6. Charity organizations
7. Government organizations
The Sole trader:
The sole trade refers to the business that is owned and operated by a single individual.
The sole proprietor is considered to be the sole profit taker of the business. In this type of
organization the legal liability of the owner is high. On the positive note, for setting up a sole
trader business paper work is not required (Salamon and Sokolowski 2016). Decisions can be
made in a rapid manner and contact can be kept with both consumers as well as employees.
The partnership business:
The partnership business can be comprised o two or 20 partners. According to the
partnership Act 2002, some types of business organizations like the big accountancy
organizations can have a good number of partners in order to experience limited liability (Noe et

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al. 2017.). One of the advantages of this type of organization is that partners cans hare skills and
the workload and thus it become easier to raise the capital.
The limited sectors
The private limited companies: This type of organization possesses limited liability along with
private shares. The structures of the private limited companies are smaller than that of the public
limited organizations. Shares in a private limited organization can only be bought and sold after
gaining permission of the Board of Directors. Not only this, share holders also posses limited
responsibility.
The public limited companies
Unlike private limited companies, public limited companies possess higher workforce. Not only
this, the share of public sectors can be purchased by any individual.
The voluntary organization
This type of organization includes a group of individuals who are involved in an agreement to
attain a specific purpose. These companies are formed in order to bring socio-economic
development of rural individuals along with promotion of culture, art as well as sports. One of
the example of voluntary organization in UK is Bloodbot.
Franchising
Franchising is opening a business under the name of a already existing popular brand. A
franchise grants permission to sell a product and trade under a popular name in a particular area
(Bromley and Meyer 2017). According to regulations, the individual who is taking out the

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franchise is supposed to invest on the business and the equipment is provided by the franchising
organization.
Charity organizations
Charity organizations are non profit organizations which are run both publicly as well as
publicly. Depending upon the location of the charity, the legal definition of what constitutes a
charitable organization may vary according to its country of origin. The purpose of these
organizations is focusing on general philanthropic nature such as educational, religious as well as
charitable.
Government organization
The government organization is referred to the companies which possess a minimum of 51
percent paid up share equity of the government. For instance, NHS is a governmental sector that
operate for providing healthcare services for uplifting public life standards
P2: Explain the size and scope of a range of different types of organisations.
Type of organization Scope Size Example(in UK)
The sole trade
Can provide service to
private sectors
Helps individuals to
create work for
Small businesses Elixir

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themselves
It is fruitful for
business that needs to
take instant decision
Partnership Can add partners for
enhancing its capital
Experienced
individuals can be
incorporated to
enhance the efficiency
of the business
Effective discussion
with partners helps to
sole issues
Greater than sole
trade
The GrapeVine
Private Limited
Companies
Comfortable for same
minded people
Posses a good number
of legal restrictions
Has opportunism to
expand in various
kinds of industries due
to accumulation of
Medium sized
business
Bestway Group

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human resources,
skills ad capitals
Public Limited
Companies
Can expand business
by investing in new
projects
Has support from the
government
Can avail finance by
issuing share in
public
Medium to large
sized business
Adsa
The voluntary Company Non profit
organizations
Cam enhance its
reputation through
superior quality of
service
Medium sized
business
Bloodbot
Franchises Franchising in the UK
is widespread and is a
major economic
powerhouse.
Small to medium Coca Cola
Charity organizations centres on
philanthropic goals
Small , medium and Marie Curie

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(Bouckaert,, Peter.
and Verhoest 2016)
depends partly on
donations from non
profit companies
Large

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Reference List
Bouckaert, G., Peters, B.G. and Verhoest, K., 2016. Coordination of public sector organizations.
Basingstoke, UK: Palgrave Macmillan.
Bromley, P. and Meyer, J.W., 2017. “They are all organizations”: The cultural roots of blurring
between the nonprofit, business, and government sectors. Administration & Society, 49(7),
pp.939-966.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management:
Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Salamon, L.M. and Sokolowski, S.W., 2016. Beyond nonprofits: Re-conceptualizing the third
sector. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 27(4),
pp.1515-1545.