Unit 1.

2 Types of Organizations
Syllabus Objectives

Know the difference between public

sector (government owned) and private
sctor (independently owned). Be able to
break concepts down into individual
characteristics and see the broader
picture how they relate. E.g. health and
education are held in both sectors for
different purposes.
Know the strengths, weaknesses and
related concepts (such as limited liability)
of each structure. Be able to combine
and synthesize these ideas into a new
idea and make a judgment based on the
weight of evidence.. E.g. a company
reduces the risk for the owners by limited
liability, but they are more expensive and
difficult to set up, whereas a sole trader
is the opposite.

Know the strengths, weaknesses and

related concepts of for-profit and not-forprofit social enterprises. Be able to
combine and synthesize these ideas into
a new idea and make a judgment based
on the weight of evidence.. E.g. Even
though the aims of an organization may
be to bring about social change and
improvement, the organization needs to
decide if profits are returned to owners or
permanently reinvested into the
organization.

Example questions may include:

Define the term Partnership
[2 marks]
Distinguish between the public and private sector
[4 marks]
Demonstrate why Mars Inc chose the private limited company structure
[6
marks]
Discuss the significance of social enterprises in supporting new businesses
in developing nations
[8 marks]