Impact of ownership

Question 1

what are mission and objectives of non profit organisation?

Answer 1

usually help people or communities in need
- they will set objectives to generate enough profit to achieve these aims

Question 2

what is public and private sector objectives

Answer 2

private sector= have objectives which focus on maximising profits although they will pursue other objectives

public sector= organisations tend to have missions aimed towards benefiting society mean social benefits are put before costs when making decisions.

Question 3

how does sole trader and private limited companies affect mission, objective and decisions?

Answer 3

• have control over objectives and decision making. may change their ownership if business is expanding

for sole trader, changing to ltd meaning gaining expertise from shareholders however may not share the same values as original owner leading to different objectives and difficulties when making decisions.

• shareholder may also lose control over business which may lead to change in mission and objective

Question 4

how does public limited company affect mission , objectives and decision

Answer 4

• majority of shareholders are not involved with management of the business. this can lead to conflict of interest. e.g manager may want to pursue objectives designed to achieve long term gains which may cause short term reductions in profits.