1.2 Types Of Organisations

Question 1

Sole trader

Answer 1

Unlimited liability
Limited source of capital
Easy to make decisions
Gets all profit

Question 2

Partnership

Answer 2

Unlimited liability
Limited source of capital
Harder to make decisions
More ideas and contacts

Question 3

Private limited company (Ltd)

Answer 3

Limited liability

Shared can’t be sold on market

Question 4

Public limited company (PLC)

Answer 4

Usually go public to gain more finance

Sell shares on market to raise finance

Shareholders own part of business for short term profits

CEO and BOD own business and want long term profits

Question 5

Social enterprise

Answer 5

A business that makes money in a socially responsible way

Reinvests some profit to benefit society. Not only max profit for owners

Question 6

Triple bottom line

Answer 6

3 objectives:

• social
• environmental
• economic (profits)

Question 7

Microfinance provider

Answer 7

Organisations that provide small loans to individuals who can’t from bank

Question 8

Cooperative

Answer 8

Owned and controlled by a group with common interests

• school owned by teachers

Question 9

Public private partnership (PPP)

Answer 9

Private sector:
- business owned by individuals (aim for profit)

Public sector:
- Owned by government

PPP:

When the private sector gets involved( management, finance etc) in a public sector project aimed at benefiting the public
E.g. Railways, Motorways
E..g. Illinois Lottery

Question 10

Non-profit social enterprise

Answer 10

• non governmental
• Non-profit social enterprises operating in the private sector
• Tackles issues that benefit the public good
  E.g. Red Cross, Amnesty International

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