Public-For-Profit Administration
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Public-For-Profit Administration
A for-profit business is defined as one whose “primary goal is making money”. Most companies in the nation are actually for-profit and these can include retail stores, restaurants, real estate companies, insurance companies, some healthcare organizations, and many others.
There are normally three types of for-profit businesses:
- Unincorporated (Sole proprietorship)
- Corporations
- Limited liability companies
Unincorporated means the business is owned by either a single person or a partnership, normally consisting of two individuals who share the legal responsibilities of the business. Any monetary activity related to this type of business is viewed by the IRS as the personal responsibility of the owner or sole proprietors (partners).
A corporation is a business formed as its own legal entity, meaning the business and its monetary activity is completely separate from that of its owners. This type of business model is often used to shield business owners from personal liability pertaining to the activities of the business and/or to sell stock in the business so that it may be owned by multiple people. Corporations are supervised by a Board of Directors, who are responsible for overseeing that the policies of the business are handled as intended by its investors. Each of these directors will hold stock in the corporation, although no one person has the sole liability of the monetary business activities.
Limited liability companies are thought of as a hybrid combination of a corporation and a sole proprietorship/partnership. While the owners have minimal personal liability and can sell stock, a small group of individuals has the ability to share management decisions, profits, and other responsibilities.
A person interested in becoming a non-profit administrator for a public business or organization would need a variance of skills, such as knowledge of accounting, human resource management, and marketing, just to name a few. Many individuals will seek a degree in Business with an emphasis in Administration. The following courses, offered by Harvard Business School are just a few that can be taken to obtain a Masters of Business Administration:
- Financial Reporting and Control
- Leadership & Organizational Behavior
- Finance I
- Marketing
- Technology & Operations Management
- Business, Government, and the International Economy
- Strategy
- The Entrepreneurial Manager
- Finance 2
- Leadership & Corporate Accountability
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