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Employer-employee relations.17. Public and private limited companies: differences, advantages and disadvantages 18. Other forms of ownership: mutuals, NPOs, charities. Mutuals Some companies, like certain life insurance companies, are mutuals. When you buy insurance with the company you become a member. Profits are theoretically owned by the members, so there are no shareholders. In Britain, another kind of mutual is building societies, which lend money to people who want to buy a house. But a lot of building societies have demutualized: they have become public limited companies with shareholders. This process is demutualization. Non–Profit Organizations Organizations with 'social' aims such as helping those who are sick or poor, or encouraging artistic activity, are non–profit organizations (BrE) or not–for–profit organizations (AmE). They are also called charities, and form the voluntary sector, as they rely heavily on volunteers (unpaid workers). They are usually managed by paid professionals, and they put a lot of effort into fund–raising, getting people to donate money to the organization in the form of donations.
Franchising - Some people are happier working on their own, while others like to belong to some kind of organization. A franchise is a contractual agreement in which one party (the franchiser) sells the right to market goods or services under its name to another party (the franchisee). McDonald's is an example of retail franchise. The franchisee is usually given exclusive selling rights in a particular area. Advantages 1) franchises are the perfect way to learn about a new business; 2) real entrepreneurs can make poor franchisees; 3) franchises require less work than other businesses; 4) franchises are good for older people; 5) previous experience is essential. Disadvantages from a Franchisor’s point of view:
Disadvantages from a Franchisee’s pint of view:
Reduced corporate profit margin due to payment of royalties and levies. Date: 2016-01-05; view: 1607
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