Question

In: Finance

For this discussion, come up with your own definition for the terms that refer to a,...

For this discussion, come up with your own definition for the terms that refer to a, "For-profit Enterprise", a "Non-profit Enterprise", and a "Social Enterprise". Feel free to share what you have learned and any relevant facts that you find along the way.

Solutions

Expert Solution

For profit enterprises means all such interprises which are working primarily for the purpose of making profit and who are taking all such decisions in order to maximize the profit for the shareholders, so they will be always profit oriented industries. For profit organisation are taxable in nature and they are generally taking the fund from the shareholders in order to maximize their earnings.

Non for profit organisation means an organisation whose primary objective is not making any profit and it is always dependent upon various kinds of donation in order to run its operation and it is often working for the social causes. Non profit organisation are tax exempt in nature.

Social enterprises are those enterprises which are working for profit making but they are trying to raise the social cause also and they do not depend upon donations, they will be working upon Profit making for social causes and these are not tax-exempt industries.


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