Two Types of Sectors
-Public Sector is an organisation which is owned by the government. It has 3 types of organisations:
National Government Organisation is run by its management which controls everything as a law agreement is passed and Government Department which its minister handles an action at Parliament. Its source of fund is to gain the taxes from public and the trading income from the company’s profitability. It shows 3 types of that organisation:
Public Corporation aka nationalised Industry supply goods or/and service to public. Its missions are to provide resourceful and cheap services to public and to gain the trading income. Its example is Singtel Telecommunication.
Government Department performs an executive role on behalf of the government. Its aim is to monitor the localisation’s movement and to amend a law policy. Its example is Minister of Manpower.
Government agencies serve with special interests as a low rank in government body. Its example is Community Centre.
Local Government Organisation is run by its management which handle decisions and Selected and Resourceful Committee who carry main responsibilities. Its purposes are to serve cheaply public who is paying taxes, to be different from other parties, political groups’ supports (such as pressure group and local press) and depend on demand and supply is various. For its finance, they gain funds from the charges, taxes, government’s grants, shareholders, public bank (DBS). Examples of that organisation are national library and public museums.
–Private Sector is an organisation which is owned by individual (non government). It has 2 types of organisation:
Non Profit Marking Organisation is to serve for special interest groups such as Cat Welfare, professional association, clubs, societies. Its purposes are to preserve the special interests, awareness, supports of goods and services.
Profit Making Organsiation is to gain profits from markets. It has 2 types:
Unlimited Liability which allows a firm to contribute unlimited and had low chance to be in heavy debt. It’s source of finance, capital contribution, gain net profit and bank loan. To benefited the firm, they can run independently, are ambitious and flexible. On other hand, it will face the heavy liability, has shortage of capital and has workforce difficulties.
Limited Liability which allows legal identity separation, limitation of liability and fixed investments. Its source of finance are shares, dentures and stock market.
Both are owned by SME and corporation.