BUSINESS MODEL 3
Running Head: Business Model 1
BUSINESS MODEL
[Name]
[Institutional Affiliation]
[Date Submitted]
Abstract
Business Model
A business can be defined as an organization that provides goods and services to customers who want or need them for exchange of money. All businesses need some form of investment and sufficient customers in which its productivity can be sold on a reliable basis so at to make a profit. Business can be not-for-profit, state-owned or privately owned.
Not-for-profit business is a type of organization that does not make revenues for its owners. The money made by or donated to a not-for-profit business is entirely used for pursuing the organization’s objectives and keeping it running. Normally, the organizations are tax-exempt charities, and as such, they are not needed to pay most taxes.
State-owned business, are legal entities that are formed by the government to take part in commercial activities on the government’s behalf. It is can either be fully or partially owned by a government and is characteristically reserved to participate in exact commercial activities. Besides representing the government in commercial activities, a state-owned business also markets physical resources, mostly to companies and trading bodies.
A privately-owned business is a company or industry that is not owned by the government. They are owned by shareholders whose share not available for sale to outside investors. The firm does not revaluate its profits and revenues to the public. These companies are mostly too small to bother with an initial public offering (IPO), and tend to fulfill their financing need from family, personal savings and retail banks.
References
“Introduction to Private Companies”. Private Company Knowledge Bank. PrivCo.
“State-Owned Enterprises Catalysts for public value creation?” (PDF). PwC. Retrieved 16 January 2018.
Definition of ‘not-for-profit organization’”. www.collinsdictionary.com. Retrieved 6 November 2018.
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