Types of Businesses Flashcards
What are the three types of businesses.
Traditional, social enterprise and charity.
What is the primary objective of traditional business.
To generate profit for it’s owners and shareholders.
What is the primary objective of social enterprise?
Dual purpose: aiming to achieve a social objective & generate profit.
What is the primary objective of charity?
Promote social good and provide benefits to the community.
How does traditional business generate revenue?
Through the sale of goods/services to customers.
How does a social enterprise generate revenue?
Through donations and partnerships.
Cannot rely on donnations
How does a charity generate revenue?
Relys on donations, grants and fundraising.
Who is profit distribution divided within, in a traditional business?
Owners and shareholders.
Who is profit distribution divided within, in a social enterprise?
Donate and give to shareholders.
Who is profit distribution divided within, in a charity?
To who the charity is for.
