Management Defination

2011-06-21T13:29:00.007+01:00

Management comprises directing and controlling a group of one or more people or entities for the purpose of coordinating and harmonizing them towards accomplishing a goal. Management often encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Management can also refer to the person or people who perform the act(s) of management.

Types of Business Organisation

The economy can be divided into two sectors:

The Private Sector
The Public Sector

The Private Sector

Private individuals and firms that are owned by private individuals
Firms in the private sector include:
Sole Traders
Private Limited Companies (Ltd)
Partnerships
Public Limited Companies (PLC)

The Public Sector

Made up of central government,
local government, and businesses
that are owned by government
In the last twenty years the number
of government-owned firms in the UK has shrunk massively
Now, very few examples remain:
for instance, the Royal Mail

Private Sector Firms

One of the key differences is between:
Sole traders and partnerships
whose liability is unlimited and Private Limited and Public Limited Companies, who have ‘limited liability’.

Other Business Types

Co-operatives are owned by their staff, who are ‘members’ of the firm
Profits are shared
amongst the members
Losses too must be shared

Franchises

Many businesses today
are franchises
A business idea is licensed
to a franchisee
The owners of the brand receive
a license fee
The franchisee gains the right
to use the business brand

Not For Profit Businesses

Many charity-based business organisations are run as ‘not for profit’ operations
They typically receive donations
or funds from groups or government
Any financial surplus is ploughed back into the business
The organisation does not aim to generate profits

Administrative Management

Management Defination