types of business organization

TYPES OF BUSINESS ORGANISATION
There are two major types or group business organisations. These are private enterprises and public enterprises.
(a) Private enterprises:

DEFINITION OF BUSINESS ORGANISATION
Business organisation can be defined enterprise set up by an individual or group of individuals, government or its agencies for the main purpose of making profit and providing goods and services for the satisfaction of human wants.

All business organisations, be it small or large, irrespective of the ownership ownership structure, have one thing in common provision of goods and services to me numerous needs of the people.

Summary of the Types of Business Organisations 1 The summary of the types of business organisation is given in Table 7.1

Types
No. of Owners
Examples

1
Sole Proprietorship
1
Olakunle Enterprises

2
Partnership
2 – 20
Ebun & Damian Enpterises

3
Private Limited Company
2 – 50
Sammy Enterprises Nig. Ltd.

4
Public Limited Company
7 to infinity
A.G Leventis Nigeria Plc.

5
Public Corporation
By Government
Nigerian Telecommunciation

6
Cooperative Societies
Any number of persons
Eguje Cooperative, Thrift and Credit Society

Private Enterprises
Public Enterprises

1
Private enterprises are owned by individuals
Public enterprises are owned by government

2
Capital is provided by private individuals
Capital is provided by government (e.g local, state or federal).

3
Their major objective is to maximize profits
Their major objective is to provide social
Services to the people.

4
They are controlled by the owners or directors appointed by owners
They are controlled by the Board of Din appointed by the government.

5
They do not enjoy any monopoly
They enjoy some form of monopoly.

6
They are established by ordinary registration or by incorporation
They are established by acts of parliament

7
They require small amount of capital to set up

They require a huge amount of capital to set up

8
They are more efficient in the management of enterprises
They are less efficient in the management of enterprises.

9
Decision making can easily be taken without rigorous consultation
Decision making is always subjected to rigorous consultations.

10
Owners bear losses suffered by private enterprises
Tax payers bear losses suffered by public
enterprises

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