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ORGANIZATIONS by Mind Map: ORGANIZATIONS

1. PROFIT ORGANIZATIONS

1.1. SOLE TRADERS

1.1.1. Individuals that take care of their own business alone and without help

1.1.2. Advantages: - easy to set up - they manage their business as they deem fit and the profits are not shared with others.

1.1.3. Disadvantages: - debts and profits belongs to the sole trader and he needs to be responsible with them - there is no one that takes care of the business if something happens to the owner

1.2. PARTNERSHIPS

1.2.1. It represents the same concept as sole traders with the exception that the business made by two or more people that are called partners.

1.2.2. Advantages: - the ownership and control of the business are split in 50/50% between the partners, all decisions are made in group - Or it can also be slip in unequal parts, distributed depending in how the partner contribute in the business

1.2.3. Disadvantages: - Each individual have limited power over the actions of the others. - you need to be sure and have confidence in who are you going to work because you can get damaged or into conflicts with your partners.

1.3. CORPORATIONS

1.3.1. Organization made by a group of individuals called shareholders (person that own a share of the business, has the right to vote on the annual conference and receives a portion of the profits)

1.3.2. Advantages: - People can buy shares of the business to get good profits without exposing themselves to risks and they are als free to sell their shares - The death of a shareholder do not damage the running of the business and has no impact on it

1.3.3. Disadvantages: A corporation is expensive to form. Many filling fees that are needed in order to open a corporation are very expensive, even small fees are expensive when you are already cash-trapped. Sometimes you don't know who you are working with, there are too many shareholders and the management of the company can operate without the oversight of the owners

2. NON-PROFIT ORGANIZATIONS

2.1. NGOs

2.1.1. Means: “Non-Governmental Organisations”. these type of organisation is meant to help the society and / or environment. As the category mentions, NGOs are a “non-profit organisation”, and the government doesn’t controls the organisation.

2.1.2. Advantages: - They don’t usually get in criminal problems, or in situations that involve something illegal - They bring benefits to the society and also to the environment

2.1.3. Disadvantages: - The owners don’t earn profit from that organization, because the money because they need to stay in the “nonprofit status” - The staff / workers are not necessarily the most qualified ones

2.2. CHARITIES

2.2.1. A charity is a type of business which its main purpose is to provide “public benefit”

2.2.2. Advantages: - They don’t pay “income taxes” because in that way there are more charities businesses without the strong purpose of gaining profit for themselves - The people who form the staff are not qualified ones, or well, with not much of experience

2.2.3. Disadvantages: - The only source of earning money for the businesses is based on the people’s donations so their money / funding is limited, and if they run out of donations, the business will go down in a quick way - The salaries that the individuals earn is low

3. OTHER ORGANIZATIONS AND PARTNERSHIPS

3.1. SOCIAL ENTERPRISES

3.1.1. Organizations that can be profit or non-profit but the main goal is that this organizations achieve important goals in order to improve society or to protect environment.

3.1.2. Advantages: - This type of organizations find it easier to raise capital. It is easier for them to finance their campaigns since they are doing something that is seemed as ethical (something good). - Marketing and making promotion for the campaign is easier since most of the times this organizations are making public a problem with the solution. This makes it easier to get people and media involved.

3.1.3. Disadvantages: - If it is a new company (a company that is starting) people may be unfamiliar with it and that will cause that maybe people will not support the campaign. - There is a big possibility that there would be a lot of competition since a lot of organizations of this type will try to make their campaigns public and will try to get support of people and this may cause that people will go to support their campaigns and not yours.

3.2. COOPERATIVES

3.2.1. This type of organization is owned by its own members. The members that created the cooperative got together to run the organization because of a common interest.

3.2.2. Advantages: It operates in benefit of all the members. This organisations works in a democratic way. Everyone’s opinion is valid and taken in consideration. - Every member has a financial interest, which causes that the members give full support and patronage.

3.3. Disadvantages: There can be the situation that there are a lot of members in the cooperative that most of them will not want to be part of it and will let a small group take over the decisions of the cooperative. Sometimes cooperatives don’t want to pay the necessary salary in order to attract and hold competent managers and employees. This will cause that the workers that are good at what they do will go into the cooperatives that will pay them more.

3.4. MICROFINANCE PROVIDERS

3.4.1. Microfinance providers give financial support to companies or individuals with limited or less means that banks would probably ignore

3.4.2. Advantages: - This organizations consist of building a financial support and help eradicate poverty and unemployment - Brings financial service to poor people and companies that are not supported by the banks

3.4.3. Disadvantages: - Some studies show that women often act as collectors of money for their husbands and sons. - Some persons sometimes become dependant on loans instead of capital investments.

3.5. PUBLIC PRIVATE PARTNERSHIP

3.5.1. This refers in the situation in which the government works with private or non-private organizations to achieve a common goal that usually help society.

3.5.2. Advantages: - private partners put a stop to unrealistic government promises or expectations - High quality work is obtained the there is a public private partnership

3.5.3. Disadvantages: - Risks for the private partner exist, and, if something goes wrong, the government also loses money because the private partner expects to be compensated - Profits for the projects depend on the competitive level, complexity and volume of the projects. The partnership cannot risk to waste more money that it is expected to.

4. References: MSG Management Study Guide. (n.d.). Retrieved August 23, 2017, from Advantages of Social Enterprises Disadvantages of a Social Enterprise. (n.d.). Retrieved August 23, 2017, from http://serotterdam.weebly.com/disadvantages-of-a-social-enterprise.html Slowik & Robinson, LLC. (n.d.). Retrieved August 23, 2017, from https://www.s-r-law.com/what-are-the-advantages-and-disadvantages-for-nonprofit.html Log in to Kognity. (n.d.). Retrieved August 23, 2017, from https://itesm-vallealto.kognity.com/study/app/business-management-hl-2016/business-organisation-and-environment/types-of-organisations/non-profit-organisations/ Corporation advantages and disadvantages. (n.d.). Retrieved August 23, 2017, from https://www.accountingtools.com/articles/corporation-advantages-and-disadvantages.html Dictionary organization. (n.d.). Retrieved August 23, 2017, from https://www.merriam-webster.com/dictionary/organization Definition Organization. (n.d.). Retrieved August 23, 2017, from http://www.businessdictionary.com/definition/organization.html What are the strengths and weaknesses of cooperative business. (n.d.). Retrieved August 23, 2017, from https://www.historians.org/about-aha-and-membership/aha-history-and-archives/gi-roundtable-series/pamphlets/why-co-ops-what-are-they-how-do-they-work/what-are-the-strengths-and-weaknesses-of-cooperative-business http://www.microfinanceinfo.com/weaknesses-and-strengths/ Public private partnership, pros and cons. (n.d.). Retrieved August 23, 2017, from https://www.thebalance.com/public-private-partnership-pros-and-cons-844713 The disadvantaged of forming a corporation. (n.d.). Retrieved August 23, 2017, from https://www.thebalance.com/disadvantages-of-forming-a-corporation-3514957