Unit 1 – Business and the Business Environment

2.1 Introduction to different types of organisations

(Part 02)

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Cooperative
§ Firm owned, controlled, and operated by a group of users for their own benefit.

§ Each member contributes equity capital, and shares in the control of the firm based on
one-member, one-vote principle and not in proportion to his or her equity contribution.

§ Example
§ Agricultural cooperatives
§ Business cooperatives
§ Childcare and preschool cooperatives
§ Housing cooperatives
§ Insurance cooperatives
§ Student cooperatives
§ Utility cooperatives
§ Worker cooperatives

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Public Sector
• Public enterprises have three defining characteristics :
1. They are government owned and controlled.

2. They are engaged in commercial (business) activities

3. They have socio-political goals alongside their primary economic goals.

• Some provide services paid for by taxation

• Public sector refers to all publicly funded or publicly owned bodies, even though they
may not form part of the obvious apparatus of government.
Examples for public sector organizations
(Sri Lankan Context)
§ Airport and Aviation Services (Sri Lanka) Limited

§ Associated Newspapers of Ceylon Ltd

§ Building Materials Corporation Ltd

§ Ceylon Fertilizer Company Ltd

§ Ceylon Shipping Corporation Ltd

§ Independent Television Network Ltd

§ Lanka Fabrics Ltd

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 Government
• The part of national economy providing basic goods or services that are either not, or

cannot be, provided by the private sector.

• It consists of :

ü National and Local governments

ü Agencies

ü Chartered bodies

• The public sector is one of the largest sectors of any economy.

§ Government sector is owned by whole society and operated for social welfare.

§ Government sector carries those activities that cannot be finance by private and those
related to social welfare.

§ Government sector does not do activities for sole benefit rather it is concerned with the
society.

Examples :
ü Government Schools

ü Government Hospitals

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Voluntary Organization
• A voluntary organization, also known as a voluntary association, is a group of people
who spend their free time helping others without monetary compensation and do not
make a profit from their activities.

• Examples for voluntary organization:

ü Sri Lanka red cross society

ü Lions club of Colombo

ü ECO-V ECO friendly volunteers

ü Sri Lanka volunteer and travel program

ü International volunteer HQ Sri Lanka

ü UN volunteers
Charities
• Charitable organizations are a kind of business that fits within the nonprofit organization
(NPO) category.

• Centered around:
ü Religious activities

ü Educational or other activities

ü Public interest activities

• Charitable organizations offer relief for the poor, distressed or underserved, and those
with religious, educational or scientific affiliations.
Example of charitable organizations:
(Sri Lankan Context)
• Support Sri Lanka Foundation

• Shanti Community Animation Movement

• Sri Lankan Charities

• Asia-Pacific Advanced Network (APAN)

• Manusath Derana Foundation

• Janasarana
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