business types Flashcards
(14 cards)
what is a not for profit organisation
an organisation established for a purpose other than making a profit, money goes back into the business and it aims to help society. it will be regulated under the charity commission and operate under the charities act 2022
how do not for profit organisations support the industry
- raise public awareness
- improve welfare standards
- educating, promoting and setting standards
- focus on welfare
- policing regulations
how do not for profit organisations act as stakeholders
businesses supporting these charities gain a better reputation and will reach a larger audience due to the expanded customer base. it helps define brand identity and differentiate businesses from their competitors
what are representative associations
membership based organisations that create commercial and industrial opportunities in the field. they voice the views of their members and have some control over things like prices and industry standards
what are the 2 types of representative association
- professional bodies (seeking to improve the occupation and standard of that industry)
- trade associations (organisation founded and funded by businesses that operate) in that specific industry
how do representative organisations support the industry
- support the running of the business
- raising industry standards
- ensure customers are aware of what the businesses should offer
how to representative organisations act as stakeholders
- support the running of the business
- provide legal advice
- free marketing
- raising industry standards
- aids business reputation by providing gold standard
what are regulatory bodies
agencies created to oversee specific industries or practices (often government run) they will:
- encourage firms to invest and creste jobs
- make laws to help / hinder firms to do this
- balance employee rights with the promotion of a financially successful business
how do regulatory bodies act as stakeholders
governments have interest in businesses doing well so they can:
- pay taxes
- create jobs and wealth
- provide goods and services
the government has some control of businesses through tax, laws and grants
what are associated businesses
business that is connected to and works alongside another
how do investors contribute money
commit money in exchange for an ownership stake in the business in expectation of financial return in the future. if the business fails they loose their money.
how do creditors contribute money
they lend money that needs to be paid back
how do banks contribute money
lend money to be paid back with interest
what are cooperative businesses
businesses owned and controlled by its members,
- everyone has equal say in the running of the business and how profits are used.
- every member puts in money
- benefits every member and local community
