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XEDITION

Board



First organization can be as the sole trader. Here only person controls it and is the owner.

He is responsible for the loss and profit of the organization. The sources of finance for this firm are normally the savings of the person, loans from bank. The main purpose of this firm is to grow and increase its profits.

Next organization can be partnership firm where more than 1 individual is the owner.

Generally two or more individuals form the partners. Partners control the firm. Here the sources of funds can be savings of the partners, loan from banks. Here the purpose of the organization is to increase the revenues and become more profitable.

Next type of organization is the company which is public.
Here the firm has gone for IPO. Hence the above mentioned firms next step is the IPO. Here there are multiple shareholders of the firm. Here the main decisions are taken by the directors and the promoters of the firm. The management is decided by the board along with the stakeholders input.

The main sources of the fund can be from the IPO, loans from the bank, other investments made by the shareholders. Main purpose of the firm is to increase the wealth of the shareholders.

Lastly a type of organization left is the franchise. Here an individual takes license of an already established name and run the firm at locations where the original firm doesn't exist.
In return the franchise owner has to give royalty to the main franchise. Main purpose of the firm is to increase the profit of the firm.

All the organization has their own shareholders to whom the firm need to work for and be answerable. Stakeholders are other entities apart from the normal shareholders.

These include the customers, employees, government, general public and environment.

In terms of keeping the customers happy firm needs to come out with good quality products. They need to maintain their service level high and ensure that the customers receive best services.

Hence customers are one of the major stakeholders, while other stakeholders are employees. Firm needs to ensure that their employees are treated well and they take care of the employees. If the employees are not handles well then it can become difficult for the firm to grow as the employees form the major pillar to take the company forward.

For the corner shop employee may not be an important stakeholder. Same goes for the charitable organization where the individuals working would be willingly working there and hence they would be more concerned about serving the people. Thus in this organization the general public will form the major stakeholder where the importance is emphasized on serving the people.









Paul Reffell is a blog enthusiast. He likes to read and write articles on computer programming. Currently he is working with , HND business assignment help, which provides solutions of assignments given in PG/PhD universities in UK.











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