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. Also, businesses can issue equity and increase their capital for future investments in growth.
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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).
Privatization of Prison Privatization Privatization of the prisons stands out as an objective by the government to change or extend its obligation in running prisons. Change in this operation calls for state policy changes where the government contracts private operators in elements relating to construction, design and security of prisons. In some states, some private companies undertake full ownership of the prisons inviting the government to evaluate the facility and offer to
Privatization Appropriateness of the Presentations In evaluating the two research papers presented for this assignment, it will involve determining the appropriateness of the papers, the literature review presented in the papers, the methods employed, the quality of the data analysis, along with readability, relevance and the contribution each paper makes towards the question at hand: is privatization the best solution in Nigeria? Owolabi Bakre from the Brunel Business School in the UK argues
Privatization has been an issue if much debate during this presidential election. In particular, privatization as it relates to social security reform has been the primary focus. The purpose of this discussion is the provide arguments for privatization and against privatization. The discussion will also cite situations and examples both in America and abroad as to why or why not privatization is a good idea, and why it may or
Privatization of Healthcare Services in China Since 1980s Empirical Analysis related to Primary level Changes Insurance Financing Policy Data Presentation, Observations and Analysis Obstacles faced by Private Clinics Future Outlook China opened its door to the outside world and introduced economic reforms in 1980 with a shift from a controlled central economy to an open and market oriented economy. This project takes on the task of investigating the Chinese privatization of healthcare sector with special emphasis on private
Privatization is a process that is frequently met in countries with developed market competition. It is used by governments in order to transfer some of the state owned assets or services to private investors. The process of privatization has its advantages and its disadvantages. In my opinion the process of privatization should be viewed from extreme points-of-view. In other words, we should not view privatization as either good or bad. I
Privatization of prisons has become an important consideration for the governments of all the developed countries including the United States, United Kingdom and Canada. The one major reason for this consideration is that the prisons are becoming overcrowded and therefore their management by the state is becoming difficult. Moreover, the involvement of the private sector also has the potential to decrease the economic burden that the management and running of