HND Business: Types and Legal Structures of Business Organisations

This report provides a comprehensive overview of business organizations, categorizing them into private, public, and voluntary sectors. It details the legal structures associated with each sector, including sole traders, partnerships, private and public limited companies, public corporations, and voluntary sector organizations like trusts and unincorporated associations. The report also includes examples of specific organizations such as Thomas Cook (private), The National Gallery (public), and Friends of Williamson's (voluntary), outlining their mission, objectives, and organizational structures. The analysis highlights the diverse range of organizational forms and their varying purposes, from profit-driven private entities to socially-focused voluntary organizations, and government-operated public services.

Business
Organisations:
Types and legal
structure.

Introduction to the different type of
organisations
In order to study the international business environment, it is necessary to acquire the
knowledge of all the types of entities running in the country. There is a wide range of
business organisations depending upon their scope, purposes, size, etc. There are
majorly three types of it namely, private, public and voluntary organisations.

Types of business organisations
Private Organisations: These types of entities are either run by individuals,
entrepreneurs rather than the government. It is that part of economy which is also
referred as the citizen sector in which the business activities are performed to earn
the maximum profit. These entities are not controlled by the state or government.
Examples of privately owned establishments are Thomas Cook, British Airways,
Alton Towers, etc.
Public Organisations: This sector is usually composed of the companies that are
either owned and operated by the government. Such types of establishments are
funded by the national and local government. This type of business entities
includes the provincial, state or municipal bodies depending upon the residing
place. Example of public sector are UK police, national gallery, Visitor
information centre, etc.
Voluntary Organisations- Such organisations are started with an aim to bring social
change in the world. They are often the charities and the trusts and provide funds
through the members, donations from the people, fees collected by the attraction
visits, etc. The objective of such establishments is to preserve, protect and
promote their cause. The examples of such organisations are the National Trust,
Friends of Williamson's, etc.

Legal structure for private sector
The judicial structure of a privately-owned organisation consists of the following
segments:
Sole Traders- This type of business structures owns a single-person in which only
small amount of finance is required to start the business. Sole traders have to
supply all the investment and also, they have to bear all the risks associated with
the entity, alone. Further, unlimited susceptibility is experienced by them
Partnership- The main objective of partnership was to evacuate the problems
associated in the sole trading. In this type of structure two or more than 2
individuals or parties are connected to each other with some written agreements.
The statement between them is based on the major law known as “Deed of
partnership”.
Private Limited Company: It is that type of joint-stock entity in which businesses has
separate and individual legal identity. It is necessary for every shareholder of such
entities to be a unit of the business. Also, every stockholder should possess limited
liability. Generally, such entities are governed by the families which are later
owned by the shareholders.

Cont.
Public Limited company- This is comparatively more larger type of joint stock
entity as compare to the private limited company. IT is briefly known as P.L.C. and is
governed by the Board of Directors. Private limited companies can also become PLC
by altering its memorandum and articles of association and later re-submitting them to
the registrar of the entity.
Co-operation- Many blimpish of the public structure are sold to the privately-owned
organisations or corporation. This process is also known as privatisation..
Franchising- In the past few years, this structure became the most popular and
effective, It is mainly used for the international marketing. Examples of the entities that
have large number of franchisees are McDonald, KFC, Perfect Pizza, etc. In this
structure, franchisee have the license to trade their products under the name of the
franchisor.
.

Legal structure for public sector
Public Corporations- A public corporation is a term to describe the nationalised
industries. In this, the goods and services are made to provide to general public. There
were number of public corporations or nationalised industries in UK before the
blimpish government of Thatcher and Major. These sectors are funded directly by the
government and the main aim of such entities is on the supply chain services not on the
production of the products for the profit. Mainly three types of goods and services are
provided by these organisations namely, public goods (emergency services), merit
goods (education and health care) and essential services (street lights, parks, libraries,
etc.)
Local authority undertakings- In this type of business structures, the organisations are
run by the administrative bodies in the local government. Such type of entities are
responsible for all the public services and amenities in their specific area. Examples
includes the road work, care of national parks, museums, etc.
State services- These are the services provided by the public sector to facilitate the
general public. These services includes a wide range. The major areas covered by them
are education, health care, public safety, country development, etc

Legal structures for public and private
sector organisation

Legal structure for voluntary sector
These entities are run by unpaid management committee and are not present for
earning rather, started with a aim to bring social change. There are four main structure
of such type or establishments, namely, trust, unincorporated association, company
limited by guarantee and charitable incorporated organisations. Some other
constructions includes community benefit society, co-operative society, community
interest company and royal charter bodies.
Trusts- It is the traditional structure for a charity and also, some older charities are also
consider as trusts. They are set up to manage money for a clearly defined aim. Such
organisations create relationships with three parties; the donors of the value added to
their trusts, trustees who are the owners of the trust property and the beneficiaries who
are the people who will receive benefits from the trusts.
Unincorporated association- This voluntary business association is more suitable for
the small groups having memberships, short-term objectives and low income. These
structures do not need to employ workers. Further, there is no separate legal presence
and depends upon the group of individuals.

Cont.
Company limited by guarantee- In this structure there are no shareholders and thus, the
profits earned are reverted back to the company's fund and re-invested on further
operations. In this the members are suspected to pay an equal share to deal with some
social or political cause. The main advantage of this the includes the separate legal
identity, liability, democracy, ownership of money/property, borrowing money and
registration process.
Charitable incorporated organisations- This structure is briefly known as CIO and
mainly aims on the charities. It is quite identical to the limited company.

Voluntary organisations legal structure
.

Different type of organisations
Private organization Thomas Cook
Thomas cook group plc is one of the world’s leading relaxation travel groups with sales
of £7.8 billion in the year ended 30 September 2015. Thomas Cook is supported by
Number of employees 21,940 and operates from 15 source markets. It is number one or
two (by revenue) in all its core markets. Thomas Cook Group plc’s shares are listed on
the London Stock Exchange.
Products and service- Charters and scheduled passenger airlines, package holidays,
cruise lines, hotels resorts, travel agencies.
Headquarters- Peterborough, Cambridgeshire, England UK.
Vision statement- To become the market Leader in Tour & travel industry for provide
all types packages to our customers.

Cont.
Mission statement- To be offers customer's best services and give them more of
what they want on a shopping tripe.
Objective- To create best working environment that values integrity, excellence,
diversity, cooperation, creativity, respects and services.
Organisational and legal structure- Company using matrix structure in doing the
business and improve the working efficiency in the business. Functions than a
more hierarchical organization. In matrix structure, each employee work in a
function-based department, such as marketing or finance, but they can be
assigned to projects under different managers and teamed with employee who
have different function. This structure adapts organisational functions to
changing organizational needs. The drawback is that the chain of command in a
matrix may become cloudy and conflicted.
Stakeholders- Customers, Employees, investors, suppliers,