Depending
on the type of a business, the ownership
of the organization can range from just a single person to over
thousands of people.
Type of Business activity is another factor to consider the
size of the firm, and as size increases the capital investment also will be increased. Thus it is require more
persons to own and organize the business.
It
is broadly classified into private sector and public sector
Private sector business organisations [firms] are owned and controlled by
private individuals.
They
are : 1) Sole trader, 2) Partnership, 3)
Limited companies (these companies are of two types, they are a) Private
limited companies b)Public limited companies.
Public sector business organisations [firms] are owned and controlled by
the government.
Public
sector business organisations are: 1) Government trading, 2) Government as
shareholder, 3) Public corporations and 4) Municipal enterprises
There
are joint sectors in many
countries that are following mixed economic systems, in which both private
individuals and government jointly own and control business organisations
Arguments
in favour of public sector 1) a government should be better able to raise funds
to pay for public expenditure, 2) safety standards might be better enforced, 3)
a government would be better able to make it affordable for all people, 4)
Public expenditure would help to reduce poverty, 5) this this would help to
increase the standards of living of the people
Arguments
against public sector, 1) a government might not be able to raise funds
always, 2) private sector may be in a better position to do this, 3)
availability of funds and public expenditure would depend on fiscal stance of
government, 4) a government might have to raise taxation to bring in the
necessary revenue to pay for the expenditure, 5) They have to be
considered in terms of opportunity cost to consider the usefulness.
Back to Home Page Click here