Question

A) EXPLAIN THE DIFFERENCE BETWEEN A CLASSIC ENTREPRENEUR AND A SOCIAL ENTREPRENEUR. LIST YOUR SOURCES

B) 1) NAME THE 6 TYPES OF BUSINESS OWNERSHIP. 2) DEFINE EACH BRIEFLY AND NAME ONE ADVANTAGE AND ONE DISADVANTAGE FOR EACH. LIST YOUR SOURCES.

Answer 1

CLASSIC ENTREPRENEUR AND A SOCIAL ENTREPRENEUR

Classic Entrepreneur can be termed as one who is concerned with customer and marketing need through the development of self-supporting ventures. The main aim is to maximize the return of the firm constantly or with growth.

Social entrepreneurs can be termed as a person or group who pursues novel applications (social, cultural, environmental) that have the potential to solve the community-based problem. it is a combination of commerce with social issues. Wealth creation is necessary but not for its own sake rather wealth is a tool the entrepreneur uses to effect social change or uplift the section of society.

The main difference is social entrepreneur focus beyond simply making a profit, and performance is measured in terms of the positive impact on the society and classic entrepreneur aims for an only healthy profit for their own shake

TYPES OF BUSINESS OWNERSHIP

1.Social proprietorship

In this type of business, ownership of the film lies with the single person and he is also responsible for making every decision of the business. the asset is owned by him and profit/loss is also totally lies to the owner of the business.

Advantage- One of the major advantages of the business is easy to set up under authority.

Disadvantage.- Unlimited liability - The owner is totally liable for all its liabilities and debt, also his personal assets can be charged to pay his business liability

2. General Partnership In this form of business two or more people involves as the owner of the business. people are known as a partner and legal agreement is made known as partnership deed and in this profit sharing ration, the duty of partners, etc are written.

Advantage    Easier to form snd run and benefit of collaboration

Disadvantage Unlimited liability of the partner and conflict may arise in the partners.

3.Joint-stock company

The joint-stock company can be termed as a company consist of individually organized to conduct business to make a profit and having joint capital which is represented by share which is owned by shareholders and shares are easily transferred.

Advantage Large capital and permanent existence

Disadvantage    Difficulty to form and delay in making the decision

4. Co-operative society - is an autonomous association of person who comes together voluntarily to achieve a common goal(social, cultural) by jointly owned and democratically controlled enterprise.

Advantage    open membership and easy to establish

Disadvantage -    limited capital and inefficient management.

5.Limited liability partnership (LLP) as a form of business that gives the benefit of limited liability of a company and flexibility of a partnership. it is a combination of partnership and company.

Advantage Limited liability and few compliances in the establishment

Disadvantage Inability to raise capital from ventures capitals.

6. The public sector means these businesses are owned and run by a government authority, agency the aim is to provide service for their citizens.

Advantage    Protection of public interest

Disadvantage Political interference and misuse of power may happen