1. For-profit and non-profit organizations and small and medium-sized enterprises
Nonprofit and for-profit organizations exist in various market structures, but they have the distinctive difference (Noe, et al 2006, p. 2,). As the name suggests nonprofit organizations are founded primarily to provide social, humanitarian and environmental needs such as food, water, clothing, shelter, or focusing on environmental issues such as protection of endangered species and forest zones from deforestation while profit organizations are founded mainly to generate income for various entrepreneurs and employees through their products and services that are distributed and valued in the marketplaces (Ingram 2017, p. 49). Small and medium-sized enterprises their criteria of identity is different based in the region where the business operates. In Europe, the definition of small and medium businesses builds on the number of employees the company has and its figures in turnover and balance sheet. By European Union (EU), small enterprises contain less than 50 employees and an annual turnover or balance sheet below £10 million while medium-sized enterprises have workers less than 250 and an annual turnover of below £50 million or a balance sheet reading of below £43 million (Eur-lex.europa.eu, 2017, p. 116).
2.Difference between profit and nonprofit
For successful organizations, they rely on the sales revenue thus forming an important aspect of the survival of the group. The organizations rely on income generated and credit arrangements with various agencies such as lenders and suppliers. Nonprofit organizations rely mostly on donations, grants, and incentives for government, individuals or other organizations. Most of their funds are aimed at benefiting the targeted recipients. For-profit organizations, the employment terms are based on contracts that one agrees either salary or hourly while for non-profit organizations it comprises of few individuals that are employed while the significant part of the workforce are volunteers. Procedures for hiring and firing of employees vary distinctively based on whether the employee receives the salary, or one is just a volunteer (Ingram, 2017, p. 89).
3.Business objectives
Operational goals provide a guideline on how the company may formulate its plan of activities. Most of the firm aims at maintaining profitability by ensuring that the revenue generated by the business activities is greater than the company expenses. Companies aim at the provision of all resources that are required by the business such as training of employees, equipment maintenance and purchase of new equipment to ensure increased productivity of the firm. Excellent customer service that aids in retaining customers and generating revenues and also creating a different satisfactory rate in customers. Maintenance of an active and productive employee working environment that aids in retaining employees since employee turnover cost is high since there is a fall in production and one incurs the cost of advertising for job opportunities. A mission statement which is the core principals of the business that facilitates its operation. It is a summary of the beliefs that the company upholds regarding customer interaction, responsibility to the community and employee satisfaction. The Growth of the business which is a projection of increased scale of operation of the firm (Root, 2014, p.77).
4.Supply of goods and services
Supply of various products and services in the market can be divided into three flows which are product flow, information flow and finances flow. A successful supply chain aims at reducing inventory. The supply chain involves key distributors of the product, manufacturers, and the end customer. Product flow includes the movement of goods from a supplier to a client or when a customer returns the property or seeks certain services offered. Information flow involves transmitting of orders and updating of the delivery status. The financial flow consists of payment of orders, credit terms and ownership arrangements.
Legal requirements of a sole trader, partnership, and private limited company
A sole trader is a business entity that is owned by one person. It has a small number of legal formalities that govern its formation. Before practice of any entrepreneurial activity, a license is required from the county clerk. The sole trader needs to ensure that the business meets the state and federal taxation requirement. A sole proprietor can pay self-employment tax which involves payment of Medicare and social security taxes.
When forming a partnership, partners are entitled to sign a deed of partnership that comprises of the names of the partners, addresses of the partners, responsibilities of each partner, the share for each partner, rights of the partners and the duration of the partnership. The partnership agreement also entails if one partner can bind the business or multiple partners are needed to enter into a contractual arrangement. The partnership agreement also implies a description of the process to be used when resolving deadlocked votes.