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Managing in and beyond corporations (Incorporated organisations (Private,…
Managing in and beyond corporations
Incorporated organisations
Private
Shares owned by private individuals
Not available to public
Purchase shares ( directly shareholder, requires consent from other shareholders)
Public
Anyone can purchase shares through a stock exchange
Often a consequence of growth
‘floated"
Advantages & disadvantages
Advantages
Limited liability
Access to greater capital
Disadvantages
Legal constraints and procedures
Weak asset base could limit funding sources
Investors not entitled to 100% of profits
Management of incorporated organisations
Shareholders
Chairperson(Board of
directors
)
CEO/MD/GM
(Board of
directors
)
Executive & non-executive
directors (Board of
directors
)
Mid-management
& employees
Company
secretary
For- Profit organisations
Non- incorporated
Sole Proprietors
Advantages
low costs
100% access to profits
total autonomy
limited need for formal documentation
Disadvantages
Sole responsibility
limited skills
poor economies of scale
unlimited liability
Partnerships
Advantages
Greater capital
losses shared amongst partners
tasks can be shared
limited need for formal documentation
Disadvantages
Decisions need consultation
limited independence
unlimited liability
Non- for profit organisations
Charities
To provide a service or product
No costs to the consumer
Tax exempt
Staffing
Paid staff
Above market rates
Below market rates
Volunteers
Government organisations
Funded through taxpayer revenue
for the benefit of tax payers
supplies goods that aren't provided by the private sector
Public goods
Roads
transport
defence
merit goods
health services
education
Non-incorporated organisations
sole proprietor
advantaes
100% access to profit
low cost
disadvantages
sole responsibility for tasks
poor economies of scale
partnership
advantage
greater capital
100% access to profits & losses shared amongst partners
disadvantage
decisions by consultation
limited independence