Classification of Business Organization according to Size and Ownership
Business Organizations or units can be classified into two broad categories according to their sizes:-
- Small Business Organizations: Sole proprietorship and partnership business units fall into small business Organizations.
2. Big or Large Business Organizations: They include limited liability companies, public corporations and co-operative societies.
Business Organizations can also be classified into two other broad categories according to pattern of their ownership:
- Private Enterprises: These are those business units that are owned and managed by private individuals. This form of business units said to belong to the private sector includes sole proprietorship, partnership, private and public limited liability companies and co-operative societies.
- Public Enterprises: These are those business units and economic activities owned and managed by the state or government of a country. These business units owned by either the federal, state or local government are said to belong to the public sector, and they include: public corporations and companies owned by the government.
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