By Romer D.
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Extra info for Advanced macroeconomics: Solutions manual
That, coupled with limited liability, has caused the law to prescribe: that a company may only legally do what the ‘memorandum of association’ (filed prior to registration) sets out as its purpose; how, in general terms, the company must manage its affairs, as set out in its ‘Articles of Association’ (also part of the registration process). The memorandum of association Think back to the ‘three-legged stool’ for a moment. In essence, the memorandum sets out the purpose of the company that forms its first leg.
22 Session A 3 mins Activity 11 List up to six organizations that operate in the public sector, either by type or by quoting specific examples in your own area. What do you think is one major difference between private companies and public sector organizations? You will find a list of organizations that operate in the public sector in the Answers to Activities on page 124. Profit centre vs. Cost centre The major difference between private companies and public sector organizations is that, broadly speaking, private organizations are profit centres.
In larger organizations, the problem is overcome by employing specialists in various fields. The result is the typical organization chart shown here. Managing Director Sales Accounts Area 1 Area 2 Sales teams Personnel Area 3 Product development Product Product Product A B C Product teams The context within which all organizations must work is now so complex that it would be impossible for the larger ones to survive without access to specialists. Employment law alone can be a ‘minefield’ for organizations in the public, private and voluntary sectors.
Advanced macroeconomics: Solutions manual by Romer D.