BUSINESS ORGANISATIONS
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Business
Organisation can be defined as an enterprise set up by an individual/group
of individuals, government or its agencies for the main purpose of making
profit and providing goods and services for the satisfaction of human wants. All
firms irrespective of their size is there to provide goods & services to
the customers.
TYPES OF BUSINESS
ORGANISATIONS:
1. PRIVATE ENTERPRISES
are the enterprises owned and managed by private individuals. This type of
business organisation is usually classified as a private sector enterprises and
examples are- Sole Proprietorship, Partnership, Private & Public Limited
Liability Company and Co-operative Societies. Their Major Aim is to Maximise
Profits.
CHARACTERISITICS OF PRIVATE
ENTERPRISES:
# Private Individuals provide the capital- Private Individuals
that owned the enterprises are the people
to raise capital for the
establishment of the enterprise.
# Owners manage the business themselves- The daily
operations of a business enterprise is controlled and managed by the owners of
the enterprise.
# Objective of business is to make profits- The
purpose of setting up the business enterprise is to make profits for the owners
of the enterprise.
# Accountability is to owners- The transactions of the
business enterprises are usually accounted for and submitted to the owners of
the enterprise.
2. PUBLIC ENTERPRISES
are the type of business organisations which are owned, controlled and managed
by the government. These Business Organisations are owned by either the local,
state or federal government and their major objective is to provide social
services to the people. Examples of Public Enterprises Like Public Corporations
and Government owned Companies such as Nigerian Ports Authority (N.P.A),
Nigerian Television Authority (N.T.A), Nigerian Railway Corporation (N.R.C)
etc.
CHARACTERISTICS OF PUBLIC
ENTERPRISES:
# Government Provides Capital- Government provides the
necessary capital required to set up public enterprises.
# Objectives is to Provide Social Services- The major
reason of setting up public enterprises is to provide social amenities and
services to the people at reduced cost.
# Public Enterprise is a Legal Entity- It is a
corporate body or legal entity meaning that it can sue and be sued in its own
right.
# Board of Directors manage the business- The Public
Enterprise is managed by board of directors appointed by the government.
SUMMARY OF THE TYPES OF BUSINESS ORGANISATIONS
|
TYPES
|
NO. OF OWNERS
|
EXAMPLES
|
|
1. Sole Proprietorship
2. Partnership
3. Private Limited Company
4. Public Limited Company
5. Public Corporation
6. Co-operative Societies
|
1
2 - 20
2 - 50
7 - Infinity
By Government
Any Number of Persons
|
Sharon Enterprises
Emeka & Iyke Enterprises
Jeniways Nig. Ltd
A.G Leventis Nigeria Plc
Nigerian Railway Corporation (N.R.C)
Thrift and Credit Society
|
DIFFERENCES BTW PRIVATE &PUBLIC ENTERPRISES:
|
PRIVATE ENTERPRISES
|
PUBLIC ENTERPRISES
|
|
1. Private Enterprises are owned by individuals.
|
Public Enterprises are owned by Government.
|
|
2. Capital is provided by private individuals.
|
Capital is provided by government (e.g. Local, State or
Federal).
|
|
3. Their Major Objective is to Maximise Profits.
|
Their Major Objective is to provide Services to the people.
|
|
4. They do not enjoy any monopoly.
|
They enjoy some form of monopoly.
|
|
5. Decision Making can easily be taken without rigorous
consultations.
|
Decision Making is always subjected to rigorous
consultations.
|
NOTE: PARTS OF THIS POST WERE CULLED FROM TONAD ESSENTIAL ECONOMICS FOR
SENIOR SECONDARY SCHOOLS BY C.E ANDE. WE AT EDU-MADE-EASY RESPECT THIS CRAFT TOO
MUCH TO DENY ITS ORIGIN. THANK YOU
Hope this was very helpful to you, leave a comment of what you think of
this tutorial and your questions below. Have a Blessed Day and Remember You are
Amazing. God Bless
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