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Stakeholders and culture - Owners and governance - Ownership models

Q: What are the 4 main ownership models?

Publicly-quoted companies State-owned enterprises Entrepreneurial businesses Family businesses

Q: What are publicly-quoted companies?

Their shares can be bought and sold by the public and they are most important in economies such as USA and Japan . Strong focus on profit , but often a delicate balance between short-run profits and long-term survival .

Q: What are state-owned enterprises?

Whole or majority is owned by national or sometimes international governments . Politicians delegate day-to-day control to professional managers . Have to earn some kind of profit in order to fund investment and build financial reserves.

Q: What are entrepreneurial businesses?

Owned and controlled by their founders , who are very powerful due to this ownership and deep knowledge of their business. As they grow , likely to rely on professional managers and draw in external investors to fund new opportunities. Need to attend closely to profit in order to survive and grow .

Q: What are family businesses?

Ownership by the founding entrepreneur has passed on to his/her family. Family members may lack the skill to attend closely to strategy and they may therefore bring in professional managers . Long-term survival is often a very important objective, rather than profit-maximizing .

5 important questions on Stakeholders and culture - Owners and governance - Ownership models

What are the 4 main ownership models?

Publicly-quoted companies
State-owned enterprises
Entrepreneurial businesses
Family businesses

What are publicly-quoted companies?

Their shares can be bought and sold by the public and they are most important in economies such as USA and Japan.
Strong focus on profit, but often a delicate balance between short-run profits and long-term survival.

What are state-owned enterprises?

Whole or majority is owned by national or sometimes international governments.
Politicians delegate day-to-day control to professional managers.
Have to earn some kind of profit in order to fund investment and build financial reserves.

What are entrepreneurial businesses?

Owned and controlled by their founders, who are very powerful due to this ownership and deep knowledge of their business.
As they grow, likely to rely on professional managers and draw in external investors to fund new opportunities.
Need to attend closely to profit in order to survive and grow.

What are family businesses?

Ownership by the founding entrepreneur has passed on to his/her family.
Family members may lack the skill to attend closely to strategy and they may therefore bring in professional managers.
Long-term survival is often a very important objective, rather than profit-maximizing.