1.2 Types of organizations Review

A business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits.

Shared decision-making is an advantage of what type of organization?

• Sole trader

• Private limited company

• Public limited company

• Partnership

The business can be based on the interests or skills of the owner – rather than working as an employee for a larger firm is an advantage of what kind of organization?

• Sole trader

• Partnership

• Private limited company

• Public limited company

A limited company, often a large business, with the legal right to sell shares to the general public, its share price is quoted on the national stock exchange.

Are social enterprises owned and run by their members (usually employees, managers or customers). Their primary goal is to create value for their member-owners.

A small to medium-sized business that is owned by shareholders who are often members of the same family; this company cannot sell shares to the general public.

A business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximizing returns to owners.

Which is an advantage of a public limited company?

• Risk of takeover due to the availability of the shares on the stock exchange

• Legal formalities in formation

• Share prices subject to fluctuation

• Separate legal identity

Is a type of non-profit social enterprise that operates in the private sector of the economy.  It is not part of a government organization.

Which sector comprises organizations accountable to and controlled by central or local government (the state)?