The impact of ownership Flashcards
As a sole trader, how do missions/ objectives work?
They are set formally or informally by the owner, and reviewed as needed.
What is decision making like as a sole trader?
As a shareholder you get to make the decisions, this makes it relatively quick
How is performance measured as a sole trader?
It is determined by the efforts of the business owner.
The owner of the business is the one that judges performance (they decide weather they performed well or not)
As a private limited company, how do missions/ objectives work?
Decisions for missions/ objectives need to be agreed upon joint owners.
What is decision making like in a private limited company (LTD)
Decisions are made by owners/ shareholders through agreement
How is performance measured in a private limited company?
Performance is measured between the shareholders, and measured against the goals and missions set by the organisation
As a public limited company, how do missions/ objectives work?
The missions/ objectives are set by the business owners and shareholders. There is a published mission statement that is formally reviewed.
What is decision making like in a public limited company?
For a decision to be locked in, a majority of shareholders have to agree on that decision.
How is performance measured in a public limited company?
There is a focus on the next years performance.
The public also scrutinise the performance - city analytics and media commentary.
As a not for profit company, how do missions/ objectives work?
Missions/ objectives are set to raise funds, so that the organisation can fund the business to achieving its overall mission.
What is decision making like in a not for profit company.
They are made in the direction of the organisation accomplishing its objectives.
How is performance measured in a not for profit company?
Performance is formally measured by the owners and managers camparing the organisations mission to the organisations current situation.
As a public sector company, how do missions/ objectives work?
They are created/ set for the best performance of a service
What is decision making like in a not for profit company?
Decisions are made to get the organisation closer to achiving its mission and objectives
How is performance measured in a public sector company?
The performance of the company is measured via public scrutiny and Ofsted (Ofsted inspect the service of a a public sector organisation)
