5 Additional Features of a Business Organization
A business is defined generally as an unincorporated legal body or individual engaged in business for profit. Companies can be either for-profit or non-profitable ones that work to meet a social cause or further a humanitarian goal. They are governed by boards of directors elected for a particular term. All such businesses have to comply with local, regional, and national regulations pertaining to licensing, business standards, borrowing, investment, ownership, and other issues. Luck with free no deposit bingo can all your dreams come true in a short time and couple of clicks!
A business can be run for profit or for non-business reasons. In recent years many businesses have turned to profit-making as a means of ensuring long-term sustainability. Non-business reasons include investing in plant and machinery to produce goods and supplies, and in infrastructure projects. Strategic management refers to the methods applied to maximize the returns to the owners of the business and minimize the cost and risk involved in doing so. Both are necessary for long-term viability of businesses.
There are many businesses that are classified as retailers and others that function primarily as suppliers. Some, such as cruise lines, have evolved to become complex conglomerates with one ship, captain, and crew performing many tasks. These types of businesses are considered to be diversified. Others, including some farmers and manufacturing corporations, are classified as primary dealers in specific markets. Their goal is to provide the bulk or main ingredient of the items that they sell.
Another type of business enterprise is known as Human Resources. These are the business enterprises that deal with employee selection, training, payroll, and benefits administration. It is estimated that there are approximately 3 million businesses that fall into this category. These businesses engage in recruiting, training, paying, and benefit administration. Many human resources enterprises focus on employment practices. Regulations for hiring, managing, and terminating employees fall under the purview of commercial law.
A third type of business organization is called a for-profit corporation. A for-profit corporation is one that derives its income not from the sale of products but from the sale of the services of the corporation. A non-for-profit corporation is one that derives its income not from the sale of goods but from the provision of non-services. Examples of non-for-profit businesses are government buildings and museums. In the United States, the government maintains many national parks, many hospitals, and many other centers that are operated by for-profit corporations.
The ability to achieve common business objectives requires flexibility in planning and execution. This is especially true when it comes to complex business activities like acquisitions, investments, mergers, and divestitures. The need for accurate execution of policies and procedures cannot be stressed enough. For this reason, there are consultants that can help business owners implement policies and procedures in a manner that meets their objectives. These consultants can help business owners improve their overall efficiency. For instance, if a business owner wants to incorporate a new company or obtain a patent, a consultant can help the business achieve common business objectives by developing strategies that minimize cost, risks, time, and effort while achieving common business objectives.
The division of profits is often used in acquisitions and mergers. Common examples include the splitting of a manufacturing entity into two or more production units to create more efficient production. Separating the profits often used in mergers and acquisitions between closely related entities allows each entity to maximize its profits and avoid siphoning off the assets of the other entity. Separating the profits also allows an acquirer or a merger to pay a set dividend to its stock holders.
Limited liability is a popular policy for business organizations. Limited liability allows the owners of a business organization to divide their risk between limited partners. A limited partner is only responsible for its own expenses, while the corporation or the owners of the business are individually and completely liable for their respective companies. Limited liability is beneficial because it enables owners to keep personal expenses separate from their businesses’ expenses, which can greatly reduce their overall liability.