HND Business - Level 4: Different Types of Organizations Report

This report provides an overview of different types of organizations within the business environment, focusing on private, public, and voluntary sectors, and legal structures. It explains the key characteristics, purposes, and examples of each type of organization. The report also discusses the size and scope of these organizations, including aspects such as ownership, funding, and operational focus. The analysis includes discussions on sole traders within private organizations, the role of government in public organizations, and the non-profit nature of voluntary organizations. Additionally, the report touches upon the legal sectors, emphasizing the role of government and regulations. The content is structured to meet the requirements of a business environment assignment, offering insights into the structure and operations of various organizational types. This information is essential for understanding the broader business landscape and the diverse ways organizations function.

BUSINESS AND
BUSINESS
ENVIRONMENT

Different types of
organization

CONTD
Private organization:
 It is controlled by individual, not a part of government. The
basic means of this sector is to gain more profit.
 This type of firm have their own legal identity and this
usually includes both profit and non- profit corporations. For
example retail store, credit unions and local businesses.
 In this sector, activities are guided to earn more profit.
 Further it is dived into Sole traders, in this type of private
organization person simply sets up to provide goods for
profit, there is no legal formality require and sole trader is
responsible for day to day management.
 For example, storekeepers, plumbers etc

CONTD
Public organization:
 These type of organization are owned by the government.
 Its main aim is not to generate profit.
 To serve public, they get funds from taxes, fees and through
financial transfers. For example, education, electricity, gas
oil etc.
 sometimes the public sector will be a partner in private
sector to create public- private partnership.
 These type of relationship work together to jointly deliver a
service and product.
 The main purpose of these sector is to enhance the level to
this sector and encourage people for more trust.

CONTD
Voluntary sector:
 The purpose of this type of organization is to benefit and enrich society
without profit and no government interference.
 They help to create social wealth rather than material wealth. But it is
separate from public sector, there are many organization which are
tightly linked with governments in order to make programs successful.
 Examples are charities, foundations and social welfare programs. In this
type of sectors people work in profit and non- profit organization.
 In profit org, these are operated by private sector and there is no
interference of government.
 These are related to both legal and financial framework. Their operation
can be based in multiple sectors like fashion, technology etc whereas
Non- profit organization are set up not to gain profit they work for the
peoples.
 There work is not to generate profit for private companies but to work
for public benefits.

CONTD
Legal Sectors:
 These type of sectors are completely bound with
laws and regulations.
 Government plays important role in this sector
because state may pass any new rule it must be
follow in this sector.
 Courts are come in the legal sectors.

CONTD
Size and scope of
different types of
organization

CONTD
Private organization:
 These type of business are mostly depends on its share because
they are small as compared to other form of organization as they
having small shareholder.
 For example 50 shareholders in UK. These share cannot be
related to public traded that means private companies cannot list
their shares on stock exchange.
 In UK, at the time of incorporation at least one share issued but
there is no minimum capital requirement so set up new private
company.
 There are many small medium enterprise which support private
company in order to protect them from personal liability and
reduce personal risk and allow to raise the funds.
 The main scope of this sector is to reduce the small scale
industry's quality and enhances the relationship between
customers and private owners.

CONTD
Public sectors:
 They can sell their shares easily on stock exchange. Not like private
companies, there is need to invest some amount of capital
 for example $50,000 in UK. They must appoint two type of directors
and company secretary and can file their annual return in every 12
months i.e. closing of financial year.
 In UK, public companies cannot trade its share without trading
certificate and they must include public limited in their names.
 They have different types of share including ordinary shares,
preferences share and redeemable share.
 The main advantage of public sectors is that they raise finance through
sale of shares to the public.
 But on the other side it is not possible for small business because they
will not afford it and at last they struggle to raise finance elsewhere.

The scope of this sector is to provide variety of services and protection
from the government . It also manages government owned industry and

CONTD
Voluntary sectors:
 charities and foundations are divided in many sub group that is less
than 10,000 are named as micro charities, between 10,000 to 100,000
called small charities, range between 10,000 to 1 million known as
medium charities, 1 million to 10 million are named as large charity
and more than 10 million are known as major charity.
 These are the different types of charity and voluntary organization
conducts lot of activities it may in grouped or sub-sectors or in industry.
 Different activities are held on international and national level in order
to creates interest to take part in charity functions. In reality many
organizations take participating in multiple activity for their benefits.

CONTD
Legal Sectors:
 There is increment in the industry, over 600 industry are added.
 For example in Bureau of Labor Statistics issued that there are
around 1,128,200 people engaged in this company during
December.
 It includes lawyers, paralegals, secretaries in the legal service
employment report.
 In June, 2013 there is increase in service about 1.12 million and
1.13 million , roughly 50,000 new employees are engaged.
 Now in 2017, the data is slightly down because only 1,123,300
people are employed in legal sector while June marked a high,
with employing 1,130,700 in that month.