Types of Organisations

Question 1

What are private sector organizations?

Answer 1

-An organization owned by private individuals or organisations.
-they Vary in size; they can be a small business, or a multinational corporation
Main aim is to make a profit*

• Profit = the difference between a firm’s costs (money going out) and it’s revenues (money coming in)

Question 2

what are public sector organizations?

Answer 2

• Organizations owned and controlled by the government.
• They typically provide goods and services that cannot be provided by the private sector, e.g. lending library or public health services
• Organizations that are fully owned by the government are called public corporations

Question 3

What is privatization?

Answer 3

Privatization occurs when an organisation in the public sector is sold to the private sector.

Regulatory businesses monitor privatized businesses to ensure they are behaving and performing in the right way.

e.g. Dwight is a private school. However, the school is still answerable to the Ministry of Education and KHDA