Types and Purpose of Organisations and Legal Structures

Business and business environment
Explain different types and purpose of organisations public, private and voluntary sectors and legal
structures
Every company run their operations in a specific type of organisation like public, private and
voluntary to operate, manage and accomplish the main goal for which they commence their business. Through
legal structure, they perform as well as conduct their responsibilities, authorities, roles and task effortlessly.
Public sector organisation
The public sector organisation is formed and managed by government of a country. They provide their
products or services for the welfare and improvement of society. For example, British Council is a pubic
organisation in UK that was established in 1934 by British government to provide services related to education
to public.
Purpose- The main goal of British Council is to provide education and promote international cultural globally.
Legal Structure- The legal structures in public sector organisations are shown below:
National level- Business managed and owned by the president as well as members of legislature of
the country. They operate their business to provide education services or finance to government of state and
regional for smooth working.
State level- In this level, the members of state government work to provide product and services for
the betterment of community in state under the guideline of central government.
The British Council company run their business activities at the national level to provide their education
services nationally or globally.
Private sector organisation
The private sector organisation is established and managed by the person along with the group of
persons with the motive of maximum profit or market share. For example: JD Sports, it was founded in 1981
and provides products related to sports like footwear, cloths as well as sports equipment in UK market.
Purpose- The main purpose of JD Sports is to earn maximum profit or brand value by providing sports
products to the target audience.
Legal structure – Given below are the legal structure in reference to private sector organisation.
Partnership- It is structure of private company which is formed and by the multiple owner to earn profit.
The responsibility, authority and profit is distributed among members as per their share in the
organisation.
Public limited company- This type of company managed by the directors or top level management as
well as owned by the shareholders. The company offers their shares to general people and listed in the
share market of the country.
The JD Sports company run their business operation as public limited company to increase
customer base and market share.
Voluntary organisation
The voluntary business is autonomous and managed by individuals in the society to provide
product and services to people of their community. For example: Samaritans, it was formed in 1953 at UK
to provide emotional support or help to people.
Purpose- The main purpose of Samaritans is to provide their health services to the people who suffers
from mental issues.
Legal structure- The legal structure for voluntary organisations are as follows-
Unincorporated associations- Individuals from a society come together to run a organisation
for the support or help of public as well as provide their services for the welfare of community instead of
making profit.
Charitable trust- It is formed as legal entity as a non-profit organisation. The members act as trustee,
agent, social worker and fiduciary on the behalf of a company or person to achieve the specific goal like
social service.
The Samaritans work as charitable trust for the betterment of people in UK.