Types And Purposes Of Organizations, Private Sector And Legal Structures

The private sector is comprised of companies run by individuals for a profit; some examples of this are sole traders- exclusive owners of a business, a limited company, a partnership or a public limited company. The public sector is where all of the government run services fall into, like the NHS or policing services. The voluntary sector are non-profit, non-governmental charities that benefit the public, examples of this are charities such as the NSPCC and Age Concern.

A private sector is usually composed of organisations which are privately owned and not part of a government; whereas a public sector is composed of organisations that are owned by the government and voluntary sectors are composed of individuals of who seek help in charitable activities. Private sectors include corporations such as partnerships and charities, like the voluntary sectors, and the public sectors include corporations such as federal, provincial, state or municipal governments. An example of a private sector is a retail store or credit unions, and example of a public sector is an educational or

A public sector business is a business that usually composed of organisations that are owned and operated by the government (PrivacySense2015).

There are seven forms of business: sole proprietorship, partnership, limited liability partnership, limited liability company (including the single member LLC), S Corporation, Franchise, and Corporation.

The structure and design of organizations have drastically changed over the last twenty-five years. Organizations develop new goals at the beginning of the year or after the completion of previous goals, and heavily depend on planning to help achieve these goals. Planning is an integral part of organizational success, as upper management receives substantial information on various needs such as risk uncertainty, available resources, employee development, and unforeseen changes in technology (Daft, 2013). Most importantly, successful planning allows management to make effective decisions when unforeseen events arise within the organization. Not participating in planning is equivalent to taking a road trip across the country without a

The Private Sector is an important entity within the Homeland Security Enterprise. The term “enterprise” includes all Department Homeland Security’s (DHS) partners and the 22 different federal agencies to work together with the same common goal (Department of Homeland Security, 2015). One of DHS’s partners is the Private Sector. The Private Sector is considered a single, overarching entity that is comingled within the society (APUS Week 1 Lesson). In simple terms, the private sector is entities that are not part of the public entity or the government and operates to make profit. Unlike the public sector (federal, state, or local government agencies), who operate for the citizens and does not operate for profit. As a single and overarching, entity, the private sector’s roles and responsibilities include: planning, critical infrastructure, partnerships, science and technology, and resilience (APUS Week 1 Lesson).

Public sectors are government controlled services that provide for both basic and essential needs of the general community. The content of government sectors varies between countries, however in most countries these include Police, Health care, Fire brigade, Military, Public transport etc. (PrivacySense.net, 2014).

Public sector refers to the part of the economy concerned with providing essential government services. The public sector includes such services as a police, military public roads, primary education and healthcare for the poor.

Public interest is given priority. The public sector looks into the interest of the general public. The government under this economy is said to be welfare state. It introduces social insurance schemes, incurs expenditure and manages economy in the interest of general masses of the country.

P1: Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures.

Manager’s of an organization has to use structure to help the company run efficiently. “The five types of organizational structures are functional, divisional, matrix, team-based, and virtual network” (Draft, 2013, p.316). Functional structure in an organization that is developed by grouping departments by the skills, level of knowledge, activities done daily, and the resource used. “This structure places specific departments from the bottom to the top” (Draft, 2013, p.318). For example, specific departments such as: human resources, accounting, engineering, and manufacturing are placed at the top, while there are mostly seen at the bottom in other organizations. While common functions such as; people, facilities, and other resources are combined together as a single department instead of being divided into multiple departments.

There are a number of forms of ownership that the business can take. The main forms are sole proprietorship, partnership, Limited Liability Corporation, corporation and S corporation. There are advantages and disadvantages to each of these forms that will be discussed in this section. A sole proprietorship essentially has the person as the business. In this situation, the proprietor bears all of the risk involved in the business. Business income flows through to the proprietor's personal taxes. For some individuals there are tax advantages, but for many the appeal of the sole proprietorship is its simplicity. The IRS defines a partnership as a relationship existing between two or more individuals who joint to carry on a business. Partners divide income according to their own agreement and that income flows through to their personal taxes. Partners also have a high level of liability for any legal action that befalls the company.

Those legal structures are: sole trader,partnership,partnership with limited liability(LLP),private limited company (LtD) and public limited company (PLC).

The most common forms of business are the sole proprietorship, partnership, corporation, S corporation, and Limited Liability Company (LLC). The LLC is a relatively new business structure allowed by state statute. The sole proprietorships are the simplest form of business. The owner is only one person and

LO2 Demonstrate the interrelationship of the various functions within an organization and how they link to organizational structure.