LCC20177853 Organizations Assignment Help

P1. Explain different types of organizations; public, private and voluntary sectors and legal structures


Are arrangement of recognised structure of relationship and responsibilities such as hierarchy’s and also authorities. These are an individual alone or groups of individuals working together to accomplish one or more objectives and goals which is the business’s mission in the short and long-term. These goals could either be to gain profit, or can be a non-profit organisation such as Muslim Aid or British heart foundation. Although organisations have been well-defined differently by different philosophers, almost all characterisations mention five common structures.

  • They are made of collective individuals and groups.
  • They are motivated in achieving the same goals and aims.
  • They involve different types of functions and purposes
  • The functions need to be organised to ensure the business is successful.
  • They exist independently (Open learn, 2017)

They are all oriented towards achieving collective goals. Below is a diagram of different organizations.

Source 1: (smart Art Graphic), Author Mariyam bib lyquat

Sole trader:

It is a very common method of business ownership which is an individual who is their own boss and starts up their business alone. However, they may make decisions to employ people, but they are the only holder of the business. The purpose of this business ownership is to provide an excellent customer service to consumers who purchase the services or goods from a sole trader, thus in doing so all profits go to the sole trader alone.

Example, of these sole traders are a Newsagent’s shop or a hair dresser, which are relatively small and employ 1 to 3 employees. (BBC, 2017).

Advantages of Sole trader:

  • The owner maintains complete control of their business and can decide how it is ran without the disturbance of others making choices for you.
  • The wage bill will be very low due to the fact that a sole trader may only employ one or two people.
  • The owner who is running the business holds all the profits within the business. 

Disadvantages of a Sole trader:

  • Unlimited liability
  • A sole trader is that if they make decisions alone, the decisions they make will result on the potential success or failure of the business. (BBC, 2017)

LCC20177853 Organizations Assignment Help

LCC20177853 Organizations Assignment HelpAs a sole trader you will be solely responsible for the debts of your business and this is something that requires serious consideration on your behalf as failure could leave you saddled with the debts of the business, even after you cease trading. (Terry Gorry, 2013)

Terry Gorry Terry Gorry Terry Gorry Terry Gorry

A Partnership:

Partnership is a business ownership is an ownership made of two or more people with the same business idea. Typically, a contract of a partnership is assigned between the two or more people which is called a deed of partnership. In the deed of partnership, the document states the agreement between the partners of the rights of each partner, and specifies how much money has been invested from each party also how much the profits and losses would be divided between the partners. They are two forms of partnerships, a general partnership which is both partners who similar portions of work, and all partners are involved in the business. Another partnership is a sleeping partner who invests their capital in the business, but doesn’t have to deal with the day to day running of the business. The usual examples of these professionals that may decide to go into a partnership together are solicitors or a dentist. (BBC,2017)

Advantages of a Partnership:

  • Partners have each other to discuss about the business.
  • Potential investors who contribute to the capital, resulting on maximum sales and profits.
  • Shares responsibilities and new expertise

Disadvantages of a Partnership:

  • Growth is limited
  • A disadvantage of a partnership is that, like a sole trader they also have unlimited liability, so they are responsible for their debts via personal assets
  • Partnerships can cause arguments over decisions which can affect the business. (BBC, 2017)

A partnership is when 2 or more people operate a business as co-owners and have a share income they also have an agreement or a contract, (Deed of partnership) this is the terms and conditions agreed between the partners of the business agreement between each other who want to run a joint business. A partnership agreement is legally binding on all members (partners) a partnership, without an agreement can be jeopardized if something happens to one or more of the partners.

       Public Sector         Private Sector      Voluntary Sector

Source 2: (Thames water logo, 2008), (Microsoft logo, 2016), (Muslim aid, 2001)

Author Mariyam bib lyquat

Public Limited Company is generally a large, populated and known business organisation. These business organisations are manufactures or retailers with stores in most of the city centres in countries. They also have directors and shareholders. Unlike private limited company’s public limited companies can trade shares in the stock exchange, which is open to the general public. Private limited company and public limited company would also need to ensure they have all four documents to run their documents organisations; (BBC,2017)

  • Register with Companies House
  • Issued with a Certificate of Incorporation
  • Memorandum of Association
  • Articles of Association 

Private Limited: A small business such as New Look or River Island which is recognised to the market as retailers that do not trade shares in the stock exchange and cannot be sold to the general public are better known to be called a private limited company. They must have at least one director to run the company, additionally the following business ownership of a limited company is usually divided into identical parts called shares, those who own one or more of the organisations shareholder. shares are called a shareholder.

Advantages of a Private Limited Company:

  • Companies have their individual legal identity, thus in doing so unlike sole traders aren’t liable for the firm’s debt which is called Limited Liability
  • Sell shares to investors raising capital to have a more chance of being successful.

Disadvantages of a Private Limited Company:

  • Yearly audited returns to register company so it’s in the eye of the public inspection
  • Not cheap to set up and also time consuming, legal fees also involved which makes it furthermore expensive.
  • There is the risk of uncontrolled growth which leads to management issues. With the business growing so fast, managers might struggle to keep up with the increased ownership and finances involved in the business. (Lilley, I. 2015).

Public sector: Is owned and ran by the state of the government for the people within the country. The money for the public sector is generated from the people who are in employment who pay taxes to the government, the money is then used to finance most the public sector. Public sector organisations that are financed by the government Such as the NHS or the H&M revenue. Examples of the public sectors are schools, the police, parks and health services. A public-sector aim is to provide essential public services to the country and organisations  communities. (Surbhi, 2015)

Advantages of Public Sector:

  • Limited liability for shareholders also shareholders can buy, sell or transfer their shares without agreements and permissions.
  • Beneficial for the community as the earnings are funded by taxpayers, so everything is to give back to the community.
  • Security and stability over long term futures within the job placement, only way to be removed is dependent on the employee’s performance,

Disadvantages of Public Sector:

  • Very control and regulated base of operations, which include shareholders entitlement to all data,
  • The co-founders may lose control over the business organisation and the rise of uncontrolled growth. (Davies, B. 2013). 

Private sector:

A Private sector are business that are owned and run by private individuals such as sole traders, partnerships, private companies and franchises. The main aim is to provide goods and services for the consumers, to gain maximum profits and lastly to grow and develop. Private sectors usually gain their finance from personal savings, bank loans or government grants. (Surbhi, 2015)

Advantages of Private Sector:

  • More capital can be raised as they are infinite number of shareholders which shares can be traded
  • It’s easier to raise finances because they have a variety of resources available
  • It has a huge scale of mass production

Disadvantages of Private Sector:

  • Has legal requirements which adds cost and also is time consuming
  • Shares cannot be advertised or listed on a stock exchange
  • Less job security


Cooperative is a Firm owned controlled, and which is operated by a group of users for their own benefit. Each member contributes equity capital, and shares in the control of the firm on the basis of one-member, one-vote principle (and not in proportion to his or her equity contribution).

Advantages of Cooperative:

  • Is own and controlled by members so its easy formation
  • Has a democratic control, one member, one vote
  • A cooperative organization is owned and controlled by members.

Disadvantages of cooperative:

  • It requires members to participate for success
  • Has less incentive, there is a possibility of development of conflict between members.
  • Limited capital

Voluntary sector: Voluntary sector isn’t owned by a group of people however someone is responsible for ensuring that it sets targets and aims, thus ensuring it does what it is set up to do. The purpose is to help particular types of people, for example Oxfam and homeless shelters. The voluntary sector is funded by the public donations, local authorities or the national lottery whom are also involved hugely.  (Surbhi, 2015)

Advantages of Voluntary Sector:

  • Work closely with the local communities to solve problems in need.
  • They often give fast effective aid at times of crisis.
  • Great for growth in job opportunities, showing that you’re willing to work for free to gain experience is great for a CV

Disadvantages of Voluntary Sector:

  • Working at a nonprofit can be fulfilling and maddening all at the same time. The industry has its own way of doing things and insiders know how to navigate the negatives. Here are some of the most common complaints of “non-profiteers.” (Case Foundation, 2011.)
  • Risks are higher, a depraved day in a business job is likely to reflect on a bad day in a non-profit job, as it can relate to a personal matter. 


BBC, (2017). Business Studies. [online]. Available at: [Accessed 25 Sep. 2017].

Case Foundation. (2011). The Pros and Cons of Working in the Non-profit Sector – Case Foundation. [Online] Available at:    [Accessed 25 Sep. 2017].

Davies, B. (2013). Benefits of Working in The Public Sector – Careers Advice – [online] Available at: [Accessed 25 Sep. 2017]. (2017). Set up a private limited company: Memorandum and articles of association – GOV.UK. [online] Available at: [Accessed 25 Sep. 2017].

Lilley, I. (2015). Advantages and Disadvantages of Private Limited Companies (LTD). [online] Available at  [Accessed 25 Sep. 2017].

Open Learn. (2017). Organizations and management accounting. [online] Available at: [Accessed 25 Sep. 2017].

Smith, J. (2015). Company Formation. [Blog] What is a company certificate of incorporation. Available at:  [Accessed 25 Sep. 2017].

Surbhi, (2015) Difference Between Public Sector and Private Sector (with Comparison Chart) – Key Differences. [online] Key Differences. Available at: [Accessed 25 Sep. 2017].

Gorry, T. (2013). sole trader | Small Business Law Ireland. [online] Available at: [Accessed 17 Oct. 2017].

Duckett, C. (2012). Microsoft launches new company logo. [online] TechRepublic. Available at: [Accessed 21 Oct. 2017]. (2016). INTERVIEW: Thames Water on Drones, Health & Safety, and Their £4bn Tunnel | Heliguy. [online] Available at: [Accessed 21 Oct. 2017].

aid, m. (2001). muslim aid logo 2001 – Google Search. [online] Available at: [Accessed 21 Oct. 2017].

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