Entrpreneurial at One Point or Essay

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The disadvantage relies however in a reduced stability of the job, as the private company, unlike the state, can go out of business. A final disadvantage of a private company is that it loses its impartiality and follows its own agenda; the advantage however materializes in increased levels of profitability (Blurtit, 2007).

The nature of for profit or not for profit organization has constituted a matter of debate for years now and even more so today, when more and more NPOs change their status into for profit entities. The reasons behind this decision are based on the advantages that for profit organizations offer. The most prominent one, and the main generator of the modification, is that they allow stakeholders to take part in the distribution of the profits and as such register financial gains, whilst NPOs force the earnings to remain integrant for future projects.

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Also, businesses can issue equity and increase their capital for future investments in growth.

But despite these net advantages, some limitations are also incurred. The most relevant of them is the obligation of for profit entities to make tax payments to federal institutions. Then, a change in status could attract stakeholder dissatisfactions as the company openly declares its shifting interest from public good to personal profits. Finally, in the case of bankruptcy, the business' assets will be transformed into liquidities to pay the debt, whereas in the case of NPOs, assets will be donated to another NPO of their choosing (Fritz, 2009)......

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