Please enable JavaScript.
Coggle requires JavaScript to display documents.
WEEK 3: Manging In and Beyond Corporations - Coggle Diagram
WEEK 3: Manging In and Beyond Corporations
non incorporated
sole trader
both have unlimited liability: no legal seperation, have to use own personal assets for debt incurred subject to not having enough finance within the business.
treated as an individual with regards to tax
partnership
between 2-20 people can form a partnership.
Incorporated
Public Limited
Anyone can purchase shares through a stock exchange
Private Limited
Shares owned by private individuals - not open to the public
Organisations that are recognised as their own legal entity
Limited Liability
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
Environments
Specific
Within organisation
Public Pressure Groups
Customers
Competitors
Suppliers
General
Outside Organisation
Global
Economic
Political/legal
Technological
Demographic
Sociocultural
Constant Interplay between the two
All of these are stakeholders
affect and are affected by organisations decisions, actions and policies
look after because:
Affects organisational outcome
the "right" thing to do
Social Responsibility Management
Managers must find how an organisation fits within its environment
Society has rules and regulations about how business should be transacted
Classical (Conventional)
SOcio-economic (sustainable)
Not for Profit
Charities
Wish to provide a service or product for a specific target group
Tax
Exempt from tax
Tax benefits apply
No wage tax since they're assumed to be using extra profit for charitable services
People
Volunteers
Professionals
Get paid at a rate way below their usual wage
Gov
Public Goods
Things that everyone needs EX: defence, public transport
Merit Goods
To be taken advantage of when they need it EX: public health services, social security, education
They aren't created to make profit, they are given a set fund to be used for the year