Identify the Purposes of Different Types of Organisations
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- Date Submitted: 05/15/2016 05:30 AM
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Businesses in the UK are split into three sectors or categories: The Public Sector, The Private Sector and The Voluntary Sector.
The Public Sector
This encompasses all businesses owned by the state on behalf of the country and run by either central government or local authorities. The purpose of this type of organisation is to provide services for the country and its people. Funding comes from the treasury or by collection of revenue such as council tax in the case of local authorities. The aims are not to maximise profit but to provide a needed service whilst keeping costs under control. Any profits are paid back to the treasury as will the treasury be liable for any deficit.
An example of an organisation within this sector is the Bank of England. Previously within the private sector it was moved into the public sector in 1946 with the main objective to act as a central bank and maintain financial stability, regulate the commercial banks and to determine the level of interest rates in the UK. This is still largely its role today.
Another example is the British Broadcasting Corporation (BBC) whose objective is to educate, inform and entertain people through radio and TV programmes and services. The BBC operates under an agreement with the Secretary of State for Culture, Media and Sport. A fee which is set by the government called the TV licence is chargeable to all households and organisations using equipment to receive broadcasts. This revenue is the main source of income and is used to fund the BBC.
The Private Sector
Unlike the Public Sector, the Private Sector comprises of companies which are owned, funded and controlled by private individuals (or those appointed to do so) often through shareholdings. The main purpose of this type of organisation is to maximise profits through the provision of services and/or products to customers, other companies and the public. Within the Private Sector organisations are also categorised dependant on business entity....
The Public Sector
This encompasses all businesses owned by the state on behalf of the country and run by either central government or local authorities. The purpose of this type of organisation is to provide services for the country and its people. Funding comes from the treasury or by collection of revenue such as council tax in the case of local authorities. The aims are not to maximise profit but to provide a needed service whilst keeping costs under control. Any profits are paid back to the treasury as will the treasury be liable for any deficit.
An example of an organisation within this sector is the Bank of England. Previously within the private sector it was moved into the public sector in 1946 with the main objective to act as a central bank and maintain financial stability, regulate the commercial banks and to determine the level of interest rates in the UK. This is still largely its role today.
Another example is the British Broadcasting Corporation (BBC) whose objective is to educate, inform and entertain people through radio and TV programmes and services. The BBC operates under an agreement with the Secretary of State for Culture, Media and Sport. A fee which is set by the government called the TV licence is chargeable to all households and organisations using equipment to receive broadcasts. This revenue is the main source of income and is used to fund the BBC.
The Private Sector
Unlike the Public Sector, the Private Sector comprises of companies which are owned, funded and controlled by private individuals (or those appointed to do so) often through shareholdings. The main purpose of this type of organisation is to maximise profits through the provision of services and/or products to customers, other companies and the public. Within the Private Sector organisations are also categorised dependant on business entity....