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      • Option D: Medicinal Chemistry >
        • D.1 PHARMACEUTICAL PRODUCTS AND DRUG ACTION
        • D.2 Aspirin and penicillin
        • D.3 Opiates
        • D.4 pH Regulation of the Stomach
        • D.5 Antiviral Medications
        • D.6 Environmental impact of some medications
        • D.7 Taxol- A Chiral Auxiliary Case Study
        • D.8 Nuclear Medicine
        • D.9 Drug Detection and Analysis
    • Biology SL >
      • Tips & Guides
      • TOPIC 1: CELL BIOLOGY >
        • 1.1 Introduction to cells
        • 1.2 Ultrastructure of Cells
        • 1.3 Membrane Structure
        • 1.4 Membrane Transport
        • 1.5 Origin of Cells
        • 1.6 Cell Division
      • TOPIC 2: MOLECULAR BIOLOGY >
        • 2.1 Molecules to metabolism
        • 2.2 Water
        • 2.3 Carbohydrates and Lipids
        • 2.4 Proteins
        • 2.5 Enzymes
        • 2.6 Structure of DNA and RNA
        • 2.7 DNA Replications, Transcription and Translation
        • 2.8 Cell Respiration
        • 2.9 Photosynthesis
      • Topic 3: Genetics >
        • 3.1 Genes
        • 3.2 Chromosomes
        • 3.3 Meiosis
        • 3.4 Inheritance
        • 3.5 Genetic Modification and Biotechnology
      • Topic 4: Ecology >
        • 4.1: Species, Communities and Ecosystems
        • 4.2 Energy Flow
        • 4.3 Carbon Cycling
        • 4.4 Climate Change
      • Topic 5: Evolution and Biodiversity >
        • 5.1 Evidence for evolution
        • 5.2 Natural Selection
        • 5.3 Classification and Biodiversity
        • 5.4 Cladistics
      • Topic 6: Human Physiology >
        • 6.1 Digestive System
        • 6.2 The blood system
        • 6.3 Defense against infectious disease
        • 6.4 Gas Exchange
        • 6.5 Neurons and Synapses
        • 6.6 Hormones, Homeostasis and Reproduction
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      • Topic 8: Energy Production
      • Option D: Astrophysics
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      • Unit 1: Changing population
      • Unit 2: Global climate—vulnerability and resilience
      • Unit 3: Global resource consumption and security
      • Unit 4: Power, Places and Networks
      • Unit 5: Human Development and Diversity
      • Unit 6: Global Risks and Resillience
      • Option A: Freshwater
      • Option B: Ocean and Coastal Margins
      • Option C: Extreme Environments
      • Option E: Leisure, tourism and sport
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      • Unit 1: Business Organization and Movement >
        • 1.1 Nature of Business
        • 1.2 Types of Organizations
        • 1.3 Organizational objectives
        • 1.4 Stakeholders
        • 1.5 External Environment
        • 1.6 Growth and evolution
      • Unit 2: Human Resource Management >
        • 2.1 The functions and evolution of human resource management
        • 2.2 Organizational structure
        • 2.3 Leadership and management
        • 2.4 Motivation
      • Unit 3: Finance and Accounts >
        • 3.1 Sources of Finance
        • 3.2 Costs and Revenues
        • 3.3 Break-even analysis
        • 3.4 Final accounts
        • 3.5 Profitability and liquidity ratio analysis
        • 3.7 cash flow
      • Unit 4: Marketing >
        • 4.1 The role of marketing
        • 4.2 Marketing Planning
        • 4.4 Market Research
        • 4.5 The four ps
        • 4.8 E-commerce
      • Unit 5: Operations Management >
        • 5.1 The role of operations Management
        • 5.2 Production methods
        • 5.4 Locations
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      • Topic 1: Measurements and Uncertainties
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      • Topic 3: Thermal Physics
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1.2 TYPES OF BUSINESS ORGANIZATIONS

For this chapter, you should be able to...

1. distinguish between THE PRIVATE AND THE PUBLIC SECTORS
2. outline the main features of FOR-PROFIT ORGANIZATIONS
3. outline the main features of FOR-PROFIT SOCIAL ENTERPRISES
4. outline the main features of NON-PROFIT SOCIAL ENTERPRISES

​

1. PRIVATE VS PUBLIC SECTORS

Public sector = ran and owned by the state (e.g. electricity production, common in planned economices)
Private sector = ran and owned by individuals


2. TYPES OF FOR-PROFIT ORGANIZATIONS

1. Sole Traders = owned by only one person.
Advantage: 
  • Setting up process is not expensive or time consuming
  • All the profit is kept by one owner
  • Complete control in owner
​
Disadvantage:
  • Unlimited liability and unincorporated
  • Difficult to obtain business bank loans
  • Difficult to raise funds
2. Partnerships = owned by 2~20 people
Advantage:
  • ​​Setting up process is not expensive or time-consuming
  • No need to publicly publish their accounts
  • Each partner can specialize
​
Disadvantage:
  • Unlimited liability and unincorporated
  • Profits have to be shared among more owners
  • Every decision has to be agreed upon by all partners
3. Private Limited Company (Ltd.) = separate legal entities from their owners
Advantage:
  • ​Limited liability and incorporated
  • No limit on the number of owners
  • Shares can be sold
​
Disadvantage:
  • Company's financial accounts are public
  • No member has full control of the company
  • Firms are not allowed to sell shares publicly
4. Public Limited Company (PLC) = often big, multinational companies with large number of employees
Advantage:
  • Shares can be sold to the public
  • Limited liability and incorporated
  • Easier to raise loans from banks

​
Disadvantage:
  • Setting up business takes time and costly
  • Financial accounts are public
  • Risk that outsider can take control of the company

3. types of for-profit social enterprises

For-profit social organizations = run according to business principles but aim to make a profit. However, they do not only aim to maximize profits if doing so compromises their social purpose.

1. Cooperatives = a form of a partnership where the business is owned and run by all the members. (e.g. financial cooperative, housing cooperative, workers' cooperative ...) The priority of cooperatives is not to make profit, but to sell or offer its products or services at as close to cost price as possible.

2. Micro-financier = provides small amounts of finance to those who traditionally would not have access to it (for example low-income individuals) In many low-income economies, individuals with good ideas and a strong work ethic have been able to open their business through micro-finance.

3. Public-private partnerships (PPP) = a business created between a private sector business and the public sector. It typically involves the construction of a facility with a social aim.

​

4. types of non-profit social organizations

Non-profit social organizations = run according to business principles but do not aim to make a profit. Their surpluses from trading may be shared with employees and customers, passed on to a third party and used to buy resources, raise finance, etc.
​

1. Non-governmental organizations (NGOs) = common way to describe a variety of social enterprises that are not organized or run by any government.
2. Charities = aim to raise money for 'good' causes, and draw attention to the needs of disadvantaged groups of society
3. Pressure groups = circles of people that attempt to influence decision makers in politics, business and society
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  • Home
  • IB STUDY MATERIALS
    • Psychology SL/HL >
      • Tips & Guide
      • Biological Approach >
        • Brain and Behaviour
        • Hormones and Pheromones
        • Genetics and Evolution
        • HL Animal Research
      • Sociocultural Approach >
        • Individual and the group
        • Cultural Origins
        • Cultural Influences
        • HL Globalization
      • Cognitive Approach >
        • Cognitive Processing
        • Reliability of Cognitive Processes
        • Emotion and Cognition
        • HL Digital World
      • B. Human Relationships >
        • Personal Relationships
        • Group Dynamics
      • D. Developmental >
        • Developing as a Learner
        • Developing an Identity
      • Studies >
        • Biological Approach
        • Sociocultural Approach
        • Cognitive Approach
        • B. Human Relationships
        • D. Developmental
    • Chemistry SL/HL >
      • Tips & Guide
      • All Vocab Definitions
      • ALL EQUATIONS
      • Unit 1,2 & 12
      • Unit 3 &13
      • Unit 4 &14
      • Unit 5,6,7 & 15,16,17
      • Unit 8 & 18
      • Unit 9 & 19
      • Unit 10 & 20
      • Unit 11 & 21
      • Option D: Medicinal Chemistry >
        • D.1 PHARMACEUTICAL PRODUCTS AND DRUG ACTION
        • D.2 Aspirin and penicillin
        • D.3 Opiates
        • D.4 pH Regulation of the Stomach
        • D.5 Antiviral Medications
        • D.6 Environmental impact of some medications
        • D.7 Taxol- A Chiral Auxiliary Case Study
        • D.8 Nuclear Medicine
        • D.9 Drug Detection and Analysis
    • Biology SL >
      • Tips & Guides
      • TOPIC 1: CELL BIOLOGY >
        • 1.1 Introduction to cells
        • 1.2 Ultrastructure of Cells
        • 1.3 Membrane Structure
        • 1.4 Membrane Transport
        • 1.5 Origin of Cells
        • 1.6 Cell Division
      • TOPIC 2: MOLECULAR BIOLOGY >
        • 2.1 Molecules to metabolism
        • 2.2 Water
        • 2.3 Carbohydrates and Lipids
        • 2.4 Proteins
        • 2.5 Enzymes
        • 2.6 Structure of DNA and RNA
        • 2.7 DNA Replications, Transcription and Translation
        • 2.8 Cell Respiration
        • 2.9 Photosynthesis
      • Topic 3: Genetics >
        • 3.1 Genes
        • 3.2 Chromosomes
        • 3.3 Meiosis
        • 3.4 Inheritance
        • 3.5 Genetic Modification and Biotechnology
      • Topic 4: Ecology >
        • 4.1: Species, Communities and Ecosystems
        • 4.2 Energy Flow
        • 4.3 Carbon Cycling
        • 4.4 Climate Change
      • Topic 5: Evolution and Biodiversity >
        • 5.1 Evidence for evolution
        • 5.2 Natural Selection
        • 5.3 Classification and Biodiversity
        • 5.4 Cladistics
      • Topic 6: Human Physiology >
        • 6.1 Digestive System
        • 6.2 The blood system
        • 6.3 Defense against infectious disease
        • 6.4 Gas Exchange
        • 6.5 Neurons and Synapses
        • 6.6 Hormones, Homeostasis and Reproduction
    • Physics SL >
      • Must-have Resources
      • Full Study Resources
      • Other Resources
      • Tips & Guide
      • IA, Lab Report
      • Topic 1: Measurements & Uncertainties
      • TOPIC 2: MECHANICS
      • TOPIC ​3: THERMAL PHYSICS
      • Topic 4: Waves
      • Topic 5: Electricity & Magnetism
      • Topic 6: Circular Motion & Gravitation
      • Topic 7: Atomic, Nuclear, & Particle Physics
      • Topic 8: Energy Production
      • Option D: Astrophysics
    • Geography SL/HL >
      • Tips & guide
      • Unit 1: Changing population
      • Unit 2: Global climate—vulnerability and resilience
      • Unit 3: Global resource consumption and security
      • Unit 4: Power, Places and Networks
      • Unit 5: Human Development and Diversity
      • Unit 6: Global Risks and Resillience
      • Option A: Freshwater
      • Option B: Ocean and Coastal Margins
      • Option C: Extreme Environments
      • Option E: Leisure, tourism and sport
    • Business SL/HL(pending) >
      • Tips & guides
      • Unit 1: Business Organization and Movement >
        • 1.1 Nature of Business
        • 1.2 Types of Organizations
        • 1.3 Organizational objectives
        • 1.4 Stakeholders
        • 1.5 External Environment
        • 1.6 Growth and evolution
      • Unit 2: Human Resource Management >
        • 2.1 The functions and evolution of human resource management
        • 2.2 Organizational structure
        • 2.3 Leadership and management
        • 2.4 Motivation
      • Unit 3: Finance and Accounts >
        • 3.1 Sources of Finance
        • 3.2 Costs and Revenues
        • 3.3 Break-even analysis
        • 3.4 Final accounts
        • 3.5 Profitability and liquidity ratio analysis
        • 3.7 cash flow
      • Unit 4: Marketing >
        • 4.1 The role of marketing
        • 4.2 Marketing Planning
        • 4.4 Market Research
        • 4.5 The four ps
        • 4.8 E-commerce
      • Unit 5: Operations Management >
        • 5.1 The role of operations Management
        • 5.2 Production methods
        • 5.4 Locations
    • Economics SL/HL (pending) >
      • Tips & guides
      • MICROECONOMICS >
        • 1.1 Competitive Markets: Demand and Supply
      • macroeconomics
    • Chinese B SL >
      • Oral Example
    • Extended Essay (EE) >
      • General Tips
      • Physics EE
    • Internal Assessment (IA) >
      • General Tips
    • Theory of Knowledge >
      • Essay Example
      • Presentation Example
    • Other notes >
      • Topic 1: Measurements and Uncertainties
      • Topic 2: Mechanics
      • Topic 3: Thermal Physics
      • Topic 4: Waves
      • Topic 5: Electricity and Magnetism
      • Topic 6: Circular Motion and Gravitation
      • Topic 7: Atomic, Nuclear and Particle Physics
      • Topic 8: Energy Production
      • Option D: Astrophysics
    • Other Citations
  • UNI application
    • United States
    • United Kingdom >
      • Academic Schools
      • Art & Design Schools
    • China
    • Japan
    • Hong Kong
    • Canada (pending)
    • Australia (pending)
  • our warm advice
    • academic advice!
    • Toxic Productivity
    • Finding Your Balance
    • Giving Up
    • YOLO?
    • Are grades important
    • Danger of Quotes
    • How to Destress
  • About us