For-Profit Organization
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A For-Profit Organization is a private economic organization (owned by company owners) formed and administered as per commercial law with the purpose of making a profit. It engages in business activities, often selling Business Products or Business Services.
- AKA: Corporation, Profit-Earning Business Enterprise, Business Entity.
- Context:
- It can (typically) sell a Business Product or a Business Service.
- It can (typically) apportion For-Profit Organization Shares to Shareholders.
- It can (typically) attempt to Externalize Costs.
- It can (typically) be composed of Company Employees, Business Processes.
- It can (often) initiate Business Projects.
- It can (often) attempt to Maximize Shareholder Value.
- It can (often) have a For-Profit Company Culture.
- ...
- It can range from being an Informal For-Profit Organization to being a Legal For-Profit Organization.
- It can range from being a Industry-Specific Company to being a General-Purpose Company.
- It can range from being a Startup Company to being a Mature Company.
- It can range from being a Small Company to being a Large Company.
- It can range from being a Owner-Managed Company to being a Professionally-Managed Company.
- It can range from being a National Company (such as American company) to being a Multi-National Company.
- It can range from being a Product-Led Organization to being a Revenue-Driven Organization.
- It can range from being a Growth Company to being a Shrinking Company.
- ...
- It can have a For-Profit Organization Vision Statement and/or a For-Profit Organization Mission Statement.
- It can be composed of For-Profit Sub-Organizations.
- It can be structured as a Corporation, Cooperative, Partnership, Sole Trader, Limited Liability Company, Public Limited Company.
- It can have Business Organization Guideline.
- …
- Example(s):
- Vendor Organizations, such as: Apple Inc. and Cisco Systems, Inc..
- Investment Firms, such as Goldman Sachs Group Inc., BlackRock Inc., which focus on managing and investing in financial assets.
- Real Estate Investment Trusts (REITs), like American Tower Corporation, Simon Property Group, that invest in real estate properties and generate income from property rentals and investments.
- Venture Capital Firms, such as Sequoia Capital, Andreessen Horowitz, investing in startup companies for growth.
- Manufacturers, like General Electric, Toyota Motor Corporation, that produce goods for other businesses or industries.
- Research and Development Companies, such as 3M Company, Merck & Co., focusing on research and development, often in collaboration with other businesses or government agencies.
- Mining Companies, like BHP Group, Rio Tinto Group, extracting natural resources like minerals, ores, or fossil fuels.
- Financial Institutions, such as JPMorgan Chase & Co., Bank of America, providing financial services like loans, savings accounts, and investment management.
- an IT Company, such as: IBM Corp., Microsoft Inc., Google Inc..
- a SaaS Company, such as: Salesforce.com, Inc., Adobe Inc..
- A&B Cleaners, a small business offering cleaning services.
- Franchise Organizations.
- …
- Counter-Example(s):
- See: Earnings per Share, Corporate Law, Competition Law, Stock Corporation, Non-Stock Corporation, Liquidation, Voluntary Association, Legal Personality, Companies Law, Profit (Economics), Commercial Law, Business.
References
2015
- (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/Company Retrieved:2015-7-9.
- A company is an association or collection of individuals, whether natural persons, legal persons, or a mixture of both. Company members share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals. Companies take various forms such as:
- Voluntary associations which may include nonprofit organization.
- A group of soldiers.
- Business entities with an aim of gaining a profit.
- Financial entities and banks.
- A company or association of persons can be created at law as legal person so that the company in itself can accept Limited liability for civil responsibility and taxation incurred as members perform (or fail) to discharge their duty within the publicly declared "birth certificate" or published policy.
Because companies are legal persons, they also may associate and register themselves as companies – often known as a corporate group. When the company closes it may need a "death certificate" to avoid further legal obligations.
- A company is an association or collection of individuals, whether natural persons, legal persons, or a mixture of both. Company members share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals. Companies take various forms such as:
2014
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Types_of_business_entity Retrieved:2014-12-30.
- A business entity is an entity that is formed and administered as per commercial law in order to engage in business activities, charitable work, or other activities allowable. Most often, business entities are formed to sell a product or a service. There are many types of business entities defined in the legal systems of various countries. These include corporations, cooperatives, partnerships, sole traders, limited liability company and other specifically permitted and labelled types of entities. The specific rules vary by country and by state or province. Some of these types are listed below, by country. For guidance, approximate equivalents in the company law of English-speaking countries are given in most cases, e.g.
:≈ public limited company (UK and Ireland)
:≈ Ltd. (UK and Ireland)
:≈ limited partnership, etc.
However, the regulations governing particular types of entity, even those described as roughly equivalent, differ from jurisdiction to jurisdiction.
When creating or restructuring a business, the legal responsibilities will depend on the type of business entity chosen.
- A business entity is an entity that is formed and administered as per commercial law in order to engage in business activities, charitable work, or other activities allowable. Most often, business entities are formed to sell a product or a service. There are many types of business entities defined in the legal systems of various countries. These include corporations, cooperatives, partnerships, sole traders, limited liability company and other specifically permitted and labelled types of entities. The specific rules vary by country and by state or province. Some of these types are listed below, by country. For guidance, approximate equivalents in the company law of English-speaking countries are given in most cases, e.g.
2014
- (Kohler, 2014) ⇒ Alan Kohler. (2014). “The paradox of productivity." Australia Business Spectator.
- QUOTE: Companies are not employment and wage machines, they are profit machines, and an “economy” is essentially the collective product of companies and other forms of businesses, plus governments.
2009a
- (WordNet, 2009) ⇒ http://wordnetweb.princeton.edu/perl/webwn?s=business
- S: (n) business, concern, business concern, business organization, business organisation (a commercial or industrial enterprise and the people who constitute it) "he bought his brother's business"; "a small mom-and-pop business"; "a racially integrated business concern"
2009b
- (WordNet, 2009) ⇒ http://wordnetweb.princeton.edu/perl/webwn?s=company
- S: (n) company (an institution created to conduct business) "he only invests in large well-established companies"; "he started the company in his garage"
…
- S: (n) company (an institution created to conduct business) "he only invests in large well-established companies"; "he started the company in his garage"
1970
- (Friedman, 1970) ⇒ Milton Friedman. (1970. “The Social Responsibility of Business is to Increase its Profits.” In: The New York Times Magazine, Sept. 13, 1970.
- QUOTE: In a free-enterprise, private-property system, a corporate executive is an employee of the owners of the business. He has direct responsibility to his employers.