Different Types of Organizations

NESTLE PLC
P1 AND P2

different types of organizations
Limited company –
 One in which liability of the members is limited to
what have been invested by them or guaranteed to
the firm.
 Those limited by shares are divided either into private
or public.
 A private limited company - does not have the limit of
the number of members or shareholders it can have,
however, it is limited only to sell its shares privately.
 public limited company - can attract public to invest in
its shares and so there is no limit in raising the
capital.
 For example, Nestle is a private limited firm.

different types of organizations
Charity –
 a non- profit organization which work with objective of social wellbeing and conduct
activities that serve public interest or common good.
 Charitable organizations may not use any of its funds to profits its entities or individuals.
 Financial figures like revenue from fund raising and sales of goods and services as well as
tax refund indicate the financial suitability of a charitable firm.
 For example, cancer research UK.
Public company
 a government owned organization which conducts business and commercial activities on
behalf of the government.
 These organizations might be having public policy objectives but still can be
differentiated from other forms of government agencies by pursing purely non – financial
objective.
 subsidiary of a public or government company can be considered as a government
company provided the government organization has a control over the composition of
Board of directors and also on more than half of the total share capital either at its own or
together with the subsidiary companies.
 For example, department of health UK

growth of the international
business environment
 Huge growth over the past five decades as it facilitates flow
of capital, idea and goods and services all over the world.
 world trade in goods has increased to a huge extent, rising
from about $10 trillion in 2005 to more than $18.5 trillion in
2014.
 Trade in services increased between 2005 and 2015 (from
about $2.5 trillion to almost $5 trillion).
 In spite of the financial crisis of 2009, developing countries
have shown a double increase in volume of trade in goods
since 2009.
 Import volumes for the developing countries have been
growing relatively more than export volumes while the
opposite has happened for the developed countries.