Not-For-Profit Businesses, Mutuals (AQA A-Level Business): Flashcards
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Practise the cards
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Not-for-profit business
Not-for-profit business
Organisation with objectives other than making profit
Alternative name for not-for-profit businesses
Alternative name for not-for-profit businesses
Social enterprises
How not-for-profit success is measured
How not-for-profit success is measured
By social impact, not financial returns
Three main objectives of social enterprises
Three main objectives of social enterprises
Local services, job skills, fair-trading
What fair-trading involves
What fair-trading involves
Importing & paying producers above market price
Definition of mutuals
Definition of mutuals
Businesses owned by clients/members, run for their benefit
Who owns mutuals
Who owns mutuals
Their customers or members, not external shareholders
What happens to surplus in mutuals
What happens to surplus in mutuals
Reinvested to improve services for members
Examples of mutuals
Examples of mutuals
Cooperatives, insurance companies, building societies
What not-for-profits do with surplus income
What not-for-profits do with surplus income
Reinvest into achieving their core objectives