Management comprises directing and controlling a group of one or more people or entities for the purpose of coordinating and harmonizing them towards accomplishing a goal. Management often encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Management can also refer to the person or people who perform the act(s) of management.
Types of Business Organisation
The economy can be divided into two sectors:
- The Private Sector
- The Public Sector
The Private Sector
- Private individuals and firms that are owned by private individuals
- Firms in the private sector include:
- Sole Traders
- Private Limited Companies (Ltd)
- Partnerships
- Public Limited Companies (PLC)
- Made up of central government,
- local government, and businesses
- that are owned by government
- In the last twenty years the number
- of government-owned firms in the UK has shrunk massively
- Now, very few examples remain:
- for instance, the Royal Mail
Private Sector Firms
- One of the key differences is between:
- Sole traders and partnerships
- whose liability is unlimited and Private Limited and Public Limited Companies, who have ‘limited liability’.
- Co-operatives are owned by their staff, who are ‘members’ of the firm
- Profits are shared
- amongst the members
- Losses too must be shared
- Many businesses today
- are franchises
- A business idea is licensed
- to a franchisee
- The owners of the brand receive
- a license fee
- The franchisee gains the right
- to use the business brand
- Many charity-based business organisations are run as ‘not for profit’ operations
- They typically receive donations
- or funds from groups or government
- Any financial surplus is ploughed back into the business
- The organisation does not aim to generate profits
