Business and Business Environment: Organization Types and Purposes

This report provides a comprehensive overview of various types of organizations, categorizing them by sector (public, private, and voluntary) and legal structure (sole proprietorship, partnership, franchise, corporation, and cooperative). It details the purposes of each organization type, including profit maximization, service provision, and societal betterment. The report also examines the size and scope of different organizations, distinguishing between private, public, and non-governmental organizations (NGOs). It highlights the operational differences, scopes, and focuses of each type, including the role of NGOs in development and advocacy. The report concludes by emphasizing the diversity of organizational forms and purposes, including for-profit and non-profit models, and the contributions of organizations like NGOs and charities to society. References from academic journals and books are included to support the analysis.

Bussiness and Business
Environment

P1 Different types and purposes of Organizations
• Public Sector : These are those organizations which are operated and
owned by the government for the people. In this sector, tax which is
payed by the public is used to finance most of the public sector
organization. It helps to improve the business.
• Purpose : The main purpose of these organizations is to provide
services to the people for their well being and for the benefit of the
society as well.
• Private Sector : These are the organization which is owned by people
for their own profit. All the expenses are maintained by them only. All
the profit earned is used to develop their business in order to increase
their sales in the market. For examples, franchises, companies (private
and public), partnership and sole traders all these come under private
sector business.

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• Sole proprietorship : These are also known as sole traders. It is
generally owned by a single person. However, he can hire employees
to work in hid business. All the expenses required for the business is
done by him only.
• Partnership : In this type of business, there are two or more people
who are engaged in the business. All the decisions are taken by a
mutual understanding between both the parties. All the profit and
expenses is divided between them.
• Franchises : It a process in which an entrepreneur purchase the rights
from a large organization to open and run a business. This practice can
help them to expand their business in the market and earn a good
profit.

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• Corporation : These are those business where the owner has a
separate legal personality in the market. It can be both, government
owned or privately owned.
• Cooperative : It is a limited liability business which can organize as
for-profit or not-for-profit. It is different from corporation business, as
it has members, not shareholders, and they share their decision-making
authority with its members.
• Purpose : Their main purpose of this sector is to increase there market
share and maximize the sales which can help them to earn a good
profit. Introducing new and innovative products which can help to
increase their sales.

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• Voluntary Sector : These are the businesses which can be owned by
any individual or group of people. These organizations collect money
through donations and funds which they use for the business. In this
sector, someone has to take the responsibility to set targets and budget
for the business. These can include NGO's which works in different
sectors, such as, education, environment, women safety, etc. These are
basically identified as non-profit and non-government enterprise
which gets investment in the form of charity.
• Purpose : The main purpose is to help the public by doing various
projects for the betterment of the society.

P2 Size and scope of a range of different types of
organization
• Private Organization : These are the organization which is owned
privately. These companies need to have shareholders but these
organizations cannot issue large number of share to public. These
organizations operate to generate a good revenue and maximize their
sales and production in the market.
• Scope : There is a huge scope for these organizations as they are the
only single person for doing decision making for the business. There
main aim is to provide service to their customers and expand their
business in the market.

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• Public Organization : These are those organizations which is running
for the welfare of the public. These can be small, medium or business
based on there services provided to the customers. These
organizations are developed to fulfill the requirement or needs of their
customers.
• Scope : For public organization there is scope in terms of
employment, as they work for the public. Their main aim is to provide
the service to their customers, whether it a national or international
customer

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• Non-government Organization (NGO's) : These are usually non
profit organization which works independently without representation
from the government. There are different types NGO's based on their
services, such as, operational and advocacy NGOs. Operational NGO's
works on designing and implementing projects which is basically
development based, whereas, in advocacy NGO's, it works for
promoting specific causes present in the society.
• Scope : There is a huge scope in NGO's as most of the people are
interested in giving their services which helps the public in some or the
other way. It operates in variety of fields, like, education, environment,
welfare, etc.

Conclusion
• There are various types of organizations based on their sizes, for example,
private, public, cooperative organization.
• According to their purposes from the business it can be divided into two
parts, such as, for-profit organization and not for-profit organization.
• There are also some organizations which work for the welfare and
betterment of the society, i.e. NGO's and Charities.

References
• Appelbaum, D. and et.al., 2017. Impact of business analytics and enterprise
systems on managerial accounting. International Journal of Accounting
Information Systems. 25. pp.29-44.
• Carayannis, E. G., Sindakis, S. and Walter, C., 2015. Business model
innovation as lever of organizational sustainability. The Journal of
Technology Transfer. 40(1). pp.85-104.

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