Business Proposal and Types of Businesssl.pdf

Types of Business

1. PROFIT
ORGANIZATION
Entities incorporated with a primary
objective of earning economic and
monetary benefits
distinct from non-profit and government
organizations
Profit motive is the main motivation behind
the existence and operation of profit
organizations.
OWNERSHIP: Ownership varies based on the
organization's legal structure: sole
proprietorships, partnerships, LLC and
corporation.

2. Financial Reporting:
Accurate financial records and reporting are vital for
tracking business performance, making informed
decisions, and meeting legal obligations. Transparent
financial data instills confidence in investors, creditors,
and regulators, ensuring accountability and informed
decision-making.
Innovation and Growth:
Innovation is key for maintaining competitiveness as
markets evolve. It involves creatively adapting products,
services, and processes to meet changing customer
needs. Examples like Apple's iPhones and Tesla's electric
cars demonstrate how innovation can lead to market
dominance and sustained growth
Ethical Considerations:
Ethical behavior is crucial in for-profit organizations to
foster trust and reputation. While profit generation is
important, businesses must adhere to ethical standards in
their dealings. Striking a balance between profit motives
and responsible practices ensures long-term success and
positive impact on society.
Operational
Aspects
Presentations are communication tools
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3. Why we choose
corporation over
partnership
Limited Liability Variation
Corporation:
Shareholders in a corporation benefit from limited liability,
safeguarding their personal assets from the liabilities of the
company.
Partnership:
Partners bear unlimited liability, exposing their personal assets to
cover business debts and legal obligations.

4. INVESTMENT ATTRACTION
Corporation Partnership
Attracting investors can be challenging for
partnerships due to the potential risk
investors face from unlimited personal
liability.
Corporations tend to be more appealing to
investors because of the safeguarded
personal assets provided by limited liability
protection.

5. Partnership: Decision-making in partnerships can be
challenging, given the need for consensus among
partners for significant choices.
Corporation: Corporations benefit from a structured
decision-making process led by a board of directors,
contributing to more streamlined and efficient decision-
making.
DECISION-MAKING COMPLEXITY

6. Employee
Benefits
Offering competitive employee benefits,
such as stock options, might be more
challenging for partnerships.
Corpotation
Partnership
Corporations can offer attractive
employee benefit packages due to their
financial stability and resources.

7. Employee
Benefits
Offering competitive employee benefits,
such as stock options, might be more
challenging for partnerships.
Corpotation
Partnership
Corporations can offer attractive
employee benefit packages due to their
financial stability and resources.

8. MARKET COMPETITON
drives for-profit organizations to innovate,
improve offerings, and provide value to
customers. It's a scenario
a scenario where multiple companies within
the same industry or sector compete to offer
products or services that attract and retain
customers.
EXAMPLES
Technology: Apple vs. Samsung
Retail: Amazon vs. Walmart
Fast Food: McDonald's vs. Burger King

9. Risk & Reward
Balancing risk and reward in a profit organization involves a thoughtful and strategic
approach to decision-making.
Taking calculated risks can lead to substantial rewards and innovative breakthroughs, but
poor risk management can result in significant losses and financial setbacks

10. EXIST STRATEGIES
Selling the business
provides liquidity and a return
on investment while allowing
the owner to move on to new
ventures.
Succession Planning
can maintain the legacy of
the business while ensuring
a smooth transition
Mergers and Acquisitions
(M&A)
can lead to synergies, cost
savings, and increased
competitiveness
IPO (Going Public)
provide capital for growth,
increased liquidity for
shareholders, and enhanced
visibility

11. FUTURE OUTLOOKS
Profit organizations continuously adapt to the factors
below, embracing change and planning for
sustainable growth while aligning with their exit
strategies to realize value when the time is right.
market trends
customer preferences
technological advancements
regulatory changes
economic conditions.

12. ADVNATAGES
DISADVANTAGES
Wealth Creation
Innovation
Job Creation
Economic Growth
Ethical Concerns
Short-Term Focus
Dependency on External Factors
Competitive pressure