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Business Ownership and Operation Introduction A business is always owned by someone. This can just be one person, or thousands. A business can have a number of different types of ownership, and this depends on the aims and objectives of the owners. Organisation aims Depends whether the organization is in the Private sector – organizations owned and controlled by private individuals or groups of private individuals or Public sector – organizations owned and controlled by Government (DO not confuse public sector with public limited companies (PLCs). PLCs are owned by private individuals through shareholders and therefore are part of the PRIVATE SECTOR) Private sector aims An aim or objective is something the organization wishes to achieve within a set period of time. e.g. to increase profits by 15% in the next 12 months to survive the first year of trading An objective it is a target for those in the business to work towards. Most businesses aim to make profit for their owners. Profits may not be the major objective, but in order to survive a business will need make a profit in the long term. Some organisations however will be ‘not-for-profit’, such as charities. Their aims may be about survival and providing a service for the people it supports. Public sector aims Organisations owned by government often focus on providing a service for the group it focuses on. Private sector business types The main types of business ownership are: Sole trader Partnerships Limited companies – both private and public limited companies Co-operative Franchises Each organisation has different rules and regulations dealing with ownership and the way that profits and losses are dealt with. |