Question

What are the advantages of NGOs in international business

Answer 1

There are various advantages of non profit organisation in an international business. It Could be summarised as follows-

A. Protection from personal liability-one can operate through non government organisations by not incurring any kind of personal liability associated with it.

B. An NGO has corporate entity, it means that it can be sued or it can sue so it is free from the existence of it's owners.

C. There is also a high level of perpetual succession associated with an NGO so it will provide the benefit of long-term existence while doing international business.

D. NGO has access to credit and it can operate upon leverage also so it has a wide market spectrum.

E. Structured financial plan-there are tax free mechanism for several activities which are conducted under an NGO so it will offer with financial flexibility and structured financial plan.

F.An NGO has right to acquire asset in its own name and it can operate by acquiring Assets and having ownership of Assets and control of those Assets.

G. There is also a facility of name preservation it means that it can preserve its name and no one can else use it.

So, these are the benefits which are associated with an NGO and it has an additional tax advantage of so while doing international business it will have the benefit of acting like a corporate entity and having a tax advantage associated with it so it will be beneficial for an NGO to have international business