Understanding Business Structures

What is a holding company?

• A company that only invests in real estate

• A company that owns shares of other companies

• A company that manufactures products

• A company that provides consulting services

What is the main purpose of a holding company?

• To operate factories

• To manage investments in other businesses

• To sell directly to customers

• To provide financial services

What is a cooperative?

• A business owned by a single person

• A business owned by its customers or workers

• A company owned by the government

• A large corporation with international operations

What is the main goal of a cooperative?

• To maximize profits for shareholders

• To benefit its members through shared services or products

• To compete with multinational companies

• To raise taxes for the community

What makes a Benefit Corporation (B Corp) special?

• It is only focused on making profits

• It has a legal commitment to social and environmental goals

• It is owned by the government

• It only operates in the technology sector

What does a B Corp prioritize?

• Short-term profits

• Social, environmental, and financial goals equally

• Reducing shareholder power

• Government projects

What is the primary purpose of a nonprofit organization?

• To generate profits for shareholders

• To provide a service or benefit without focusing on profit

• To create new technologies

• To compete with large corporations

What do nonprofit organizations often focus on?

• Solving social or environmental problems

• Selling luxury products

• Increasing stock value

• Opening new factories

What is a State-Owned Enterprise (SOE)?

• A company owned by private investors

• A business owned and operated by the government

• A nonprofit organization

• A small, family-owned business

Why do governments create State-Owned Enterprises?

• To compete with global companies

• To provide essential services like water, electricity, or transportation

• To increase profit margins for shareholders

• To avoid regulating private businesses