Business Environment - PDF

Added on - 13 Nov 2020

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BUSINESSENVIRONMENTTASK 1AHMAD AMIN TAHIR
PROFITABLEORGANIZATIONA profit-making organization is a company in business to make money forits owners or shareholder.ADVANTAGES OF PROFIT ORGANIZATIONSAbility to generate income from a wide array of business activitiesAssets are highly liquidRevenue generated above and beyond expenses is for the ownerDISADVANTAGES OF PROFIT ORGANIZATIONSTaxes must be paid on its profitsFinancial liabilityObligation to investors and creditors1.NON-PROFITABLE ORGANIZATIONNonprofit organizations are organized for a public or mutual benefit otherthan generating profit for owners or investors (Salamon 1999).ADVANTAGES OF NON-PROFIT ORGANIZATIONSNonprofits organizations are generally perceived by the public in amore positive lightOpportunities to get grant funding and lower costs on thingsNonprofits organizations usually have significant tax advantages overfor profit-making businessesDISADVANTAGES OF NON-PROFIT ORGANIZATIONSThey rely heavily on fundraising and private donations to provideservices and resourceOpen to public inspection and scrutinyLoss of tax status
PUBLIC LIMITED COMPANYPubliccorporationsare also referred to as state-owned enterprises andnationalized industries. Such corporations are owned by the government,as the business must registersecuritiesin the stock market before selling tothe publicADVANTAGES OF PUBLIC ORGANIZATIONS1.Public interests are protected2.Easier planning and coordination3.Quicker decisionsDISADVANTAGES OF PUBLIC ORGANIZATIONS1.Difficult to manage2.Expensive to maintain and operate3.Consumer interests is ignored4.2.PRIVATE LIMITED COMPANYA private organization is any partnership, corporation, person, or agencythat is not operated by a profit or a public body. It includes all businessesthat are for-profit that are not government owned or operated.ADVANTAGES OF PRIVATE ORGANIZATIONS1.Limited liability2.Separate legal entity3.No minimum capital
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