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1.2 Types of organization (main features of proft-based (commercial)…
1.2 Types of organization
main features of proft-based (commercial) organizations
Sole traders
owns and runs the business
no legal distinction between the business and the sole trader
usually has limited finance
the business is close to the customer
has privacy and limited accountability
Partnership
desicions are made jointly by the partners
owned and managed by more than 1 person
finance is usually more availabele
some partners may be "sleeping partners"
can offer a more varied service
Companies or cooperations
shareholders own but do not run the business
the business and the owners are divisible
the existence and details are legally recorded and matters of the public record
greater finance is generally available
a company is held to a high degree of accountability
have greater stability and a higher chance of continuity
for-profit social enterprises
cooperatives
financial
workers'
housing
consumer
micro-fnancers
The idea is very simple: to provide small amounts of finance to those who traditionally would not have access to it
public-private partnerships (PPPs).
profit is important but not the top priority
collaboration between business and the local community
greater democracy in the business than in other organizations
operates the same function as other businesses
advantages
favourable legal status achieved
strong communal identity
benefits to the stakeholder community
disadvantage
decision making is complex and time consuming
capital for growth may be insufficient
capital for financial strength may be insufficient
Non-profit social enterprises
NGO
local,national,international
run by voluntary groups
run to promote social cause
can be funded by various sources
exert pressure and influence on government
Charity
the objective of promoting a worthwhile cause
run for the benefit of others
finance is obtained through limited range of sources(donations,selling goods,etc)
promote and raise money for social cause
predominantly operate in the private sector
disadvantages
lack of control
funding can be irregular