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1.2 Types of Organization

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Mario Alvarado M.

on 10 September 2014

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Transcript of 1.2 Types of Organization

Finally Difference between public and private companies? Private Sector Organizations. Types of Organization Businesses that operate in the private sector are not owned by the government. They are owned and controlled by private individuals and organizations.
Public Sector Organizations Organizations that operate in the public sector are under the ownership and control of the government.
Benefits of Privatization Efficiency gains
Lower costs of production
Increased choice
Incentives to innovate
Less financial burden
Source of government revenue
Why do some companies belong to the public sector? To ensure that everyone has access to basic services such as education, health care, public parks and public libraries.
Public sector ownership of resources is much less common today due to the benefits of private sector ownership.
Main aim = to make profit 3 main types of profit-based businesses in the private sector: Sole Traders, Partnerships and Companies (Corporations) Traditionally, public sector organizations are run to provide essential goods and services that would be inefficiently provided by the private sector.
Organizations that are wholly owned by the government are called public corporations. Ex.: Petroecuador, CNT. To protect citizens and businesses through institutions such as the Police or the courts.
To reduce unemployment, e.g. governments tend to be a large employer of teachers, doctors, nurses, etc.
Many public corporations and assets have been privatized (sold-off or transferred to the private sector).
Regulatory bodies have been set up by the government to monitor the conduct and performance of privatized companies.
What is a public corporation? Benefits of public orgs.? Benefits of privatization?
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