1.0 There are three types of organisation, what are they?
1. Public 2. Private 3. Not for Profit
1 of 20
1.0 What is another name for Publicly Owned Companies?
State Owned Enterprises
2 of 20
What are some examples of Public Organisations?
1. Hospitals 2. Schools 3. Defence 4. Police. Can be utilities like BT
3 of 20
1.0 What are the goals of Public Organisations?
1. Provide Services deemed important by Society 2. Demonstrate efficiency in allocation of resources (maximum quality and quantity) 3. Balanced Budget
4 of 20
1.0 Why have public-private partnerships grown?
1. Eg: Construction projects, sharing risk and reward for both. 2. By using Private, Public services can be run more efficiently with better allocation and efficiency of resources.
5 of 20
1.2 Non-Profit - What is a Mutual?
1. Organisation raising funds from membership or customers (members) 2. Funds can be used to provide common services to all members of the organisation or society. 3. Owned and run for benefit of members. 4. No external Shareholders.
6 of 20
1.2 Non-Profit - What is a Co-operative?
1. Member-owned business with membership open to those who use services. 2. Democratically controlled and not for profit. 3. A coop returns any margins or profits to members on the basis of usage.
7 of 20
1.2 Non-Profit - Difference between Mutuals and Co-operatives
1. No significant difference. 2. Principal distinction is their basic operating principle. 3. COOP to "Each according to use" 4. Mutual "Each according to need".
8 of 20
1.2 Non-Profit - Goals of Mutuals
Mutuals create a fund that all members can fall back on in times of need. However while Mutual members purchase insurance policies and pay annual premiums, they hope to never use them.
9 of 20
1.2 Non-Profit - Goal of Co-operatives
Co-operative members want to use their services as often as possible to get maximum benefit.
10 of 20
1.2 Non-Profit - Similarities between Mutuals and Co-operatives
They are in many respects independent organisations of individuals who volunteer to fuilfil common social, economic and cultural needs and aspirations through co-ownership in a democratically-run organisation.
11 of 20
1.2.1 Non-Profit - Objectives Part 1
1. Profit is not objective. 2. Mutuals use surplus for needs of members (better rates on deposits and borrowing etc) 3. Charities want to provide service for society or target group.
12 of 20
1.2.1 Non-Profit - Objectives Part 2
4. Members Club (eg sport) provide facilities or environment to enjoy activities of membership. 5. QUANGO (Quasi Autonomous Non-Governmental Organisations) non-departmental public bodies that perform a range of tasks/functions on behalf of government
13 of 20
1.2.1 Non-Profit - Objectives Part 3
6. To provide value for money 3 E's: A. Economy (cheap acquisition of resources) B. Efficiency (Minimum wastage of resources) C. Effectiveness (operating in line with organisations objectives)
14 of 20
1.3 Profit Organisations - Sole Traders and Partnerships
1. Least admin and red tape. 2. Unlimited liability (personal assets could pay debt) 3. No shares. 4. Partnership will have document "Partnership Agreement" that sets out relationship in legal binding way.
15 of 20
1.3 Profit Organisations - Limited Companies
1. Limited Company benefits owner, exposure is limited to nominal value of shares acquired 2. Private Limited Company (LTD) cannot offer shares/securities for sale to the public whereas a public limited company (plc) can. 3. PLC on STX "quoted comp.
16 of 20
1.3.2 Profit Organisations - Objectives
1. Principal - maximization of profits > A. Done by increasing share price. B. Annual Dividends. C. Return on Capital Employed (ROCE)
17 of 20
1.3.2 Profit Organisations - Stakeholder's who need appeasing
1. Customers 2. Suppliers 3. Employees 4. Managers and Directors 5. Government 6. Local Residents
1. Primary > A. Internal (eg. employees) B. Connected (shareholders, customers, suppliers, financiers) 2. Secondary (local community government, pressure groups)
19 of 20
1.3.2 Profit Organisations - Other Objectives
1. Managerial theories > A. Revenue Maximisation (Eg Baumol) (or) B. long term survival. 2. Managers follow satisficing theories where they try to achieve enough to satisfy stakeholders and themselves in a comfortable position (pay and benefits)
20 of 20
Other cards in this set
Card 2
Front
1.0 What is another name for Publicly Owned Companies?
Comments
No comments have yet been made