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Organisations - Coggle Diagram
Organisations
Incorporated Organisations
Own "legal Entity"
Limited Liability
Value broken into shares
Liability limited to organisational assets
Types of Organisations
Private
Shares owned by private individuals
Public
Anyone purchase shares
Often consequences of Growth
Advantages
Limited Liability
Access to greater capital
Disadvantages
Legal Constraints
Investors not entitled to profit
Non-Incorporated
Sole Proprietor
Advantages
Low Cost
100% Access to Profits
Exclusive Decision Making
Limited need for formal documentation
Disadvantages
Sole Responsibility
Skills limited to owner
Labour intensive
Unlimited liability
Partnership
Advantages
Greater capital, breath of skills and abilities
100% access to losses
Limited need for formal documentation
Disadvantages
Decision by Consultation
limited independence
Risk associated with exit of partner
Not For Profit Organisations
Charities
Tax Exempt
Operate on a lower cost base
Government Organisations
Funded through tax payers revenue
Exist for tax payers' benefit
Social responsibility
How businesses should be managed
Classical View
Socio-Economic View